Adani Ports and Special Economic Zone today announced a significant acquisition by picking up an 80% stake in Astro Offshore for USD 185 m. In a significant strategic move, APSEZ has made this acquisition aimed at expanding its foothold in the global offshore supply vessel market.
Astro Offshore was formed in 2009 to be one of the leading participants in the supply vessel segment related to offshore vessels. Indeed, it has been instrumental in providing all sorts of support services to valued customers across the Middle East, India, Far East Asia, and Africa. In this regard, APSEZ aims to expand its operating resources and further consolidate its position in the offshore and marine sectors.
Adani Group said in the statement that this would be an all-cash deal worth USD 185 million. The group also hopes that the deal will be “value accretive” from the very first year itself. This suggests that it is in the belief of value improvement in the financial performance and growth trajectory of APSEZ.
Astro Offshore presently operates a diversified fleet of 26 OSVs comprising AHTs, flat-top barges, MPSVs, and workboats amongst others. Apart from vessels, the company offers vessel management and other ancillary services. APSEZ will add assets of Astro Offshore to its portfolio and substantially augment its marine-related competency.
The Adani group pointed out that Astro has abundant experience in providing services related to the construction. And maintenance of offshore platforms, oil and gas fields, and subsea facilities. This experience enables Astro to provide top-end services to customers in the offshore exploration and drilling markets. Thus, the acquisition is within the strategic objective of APSEZ to evolve into an integrated global marine operator.
The acquisition ascertains the strategic pipelining, said Ashwani Gupta, full-time director and Chief Executive Officer of APSEZ. “Astro’s acquisition forms part of our roadmap to one of the world’s largest marine operators,” he said. He explained in detail that the addition of 26 OSVs from Astro would scale APSEZ’s fleet from 142 tugs and dredgers to 168 vessels- increasing scope and efficacy.
He also said that the acquisition would give APSEZ Tier-1 customers. The deal will go on to strengthen APSEZ’s strategic presence in regions like the Arabian Gulf, the Indian subcontinent, and Far East Asia. Gupta sounded excited about partnering with Astro’s leadership team and scaling up the current platform.
Another comment over the acquisition came from Mark Humphreys, the Managing Director of Astro Offshore. Humphreys said the partnership will drive accelerated growth, scale, and diversity in the fleet. He emphasized that this could also provide an opportunity to expand the geographical reach and offer integrated solutions to customers. “Over the last 15 years, we have built a remarkable trajectory, underpinned by strategic investments in our OSV fleet. And strong relationships with customers,” Humphreys said. “This partnership with APSEZ represents a very important inflection point for us.”
Therefore, the agreement does not rely on any regulatory approvals. The deal is thus likely to be concluded within the next month pending the satisfaction of conditions precedent, which are operational. This thin time frame represents how smoothly the acquisition process has been. And also represents the readiness of the two parties concerned to forge ahead.
In other words, the acquisition of Astro Offshore by APSEZ, this become a milestone in the history of APSEZ. With the addition of many vessels into its fleet and entering hitherto unexplored markets. And clientele, APSEZ is advantageously placed to expand its marine operations worldwide. This strategic move underlines APSEZ’s commitment to expanding its presence and capabilities in the offshore supply sector.
ANI
