Adani Ports and SEZ buys 80% of Singapore’s Astro

APSEZ has sealed the deal for $185m in cash, which will help it expand offshore support vessel operations in the Middle East, the Indian subcontinent, Far East Asia and Africa.

September 02, 2024

Adani Ports and Special Economic Zone (APSEZ), India’s largest ports and logistics company, has agreed to acquire a 80% stake in Singapore's Astro, in an all-cash deal for $185 million, implying an enterprise value of $235 million, according to an August 30 company media release.

Incorporated in 2009, Astro is a leading global offshore support vessel (OSV) operator in the Middle East, India, Far East Asia and Africa.

The Singapore firm owns a fleet of 26 OSVs including anchor handling tugs (AHTs), flat top barges, multipurpose support vessels (MPSVs) and workboats and provides vessel management and complementary services. During the year ending 3April 30, 2024, Astro posted $95 million revenue and $41 million earnings, before, interest, tax , depreciation and amortisation (EBITDA). As of April 30, 2024, Astro was net cash positive.

Astro's customers include NMDC, McDermott, COOEC, Larsen & Toubro and Saipem, and is a key player in the offshore construction & fabrication and offshore transportation markets, including oil & gas. 

Astro also helps support the construction and maintenance of offshore platforms, oil & gas fields and subsea facilities allowing it to service the offshore exploration & drilling markets.

Astro’s vessels also support leading international dredging companies, including large offshore construction and land reclamation projects.

In the statement, Ashwani Gupta, whole-time director & CEO, APSEZ, said: “Astro’s acquisition is part of our roadmap to becoming one of the world’s largest marine operators. Astro will add 26 OSVs to our current fleet of 142 tugs and dredgers, taking the total count to 168.”

He added: “The acquisition will also give us access to an impressive roster of tier-1 customers while further consolidating our footprint across the Arabian Gulf, the Indian subcontinent and Far East Asia. We look forward to working closely with Astro’s leadership team and scaling up the current platform.”

Mark Humphreys, managing director, Astro Offshore, said: “Over the past 15 years, we have created an impressive company trajectory, driven by strategic investments in our OSV fleet and deep relationships with our customers.”

Humphreys added: “This partnership with APSEZ represents a critical inflection point for us. Together, we can accelerate growth to add further scale and diversity to our fleet mix, expand our geographical footprint and deliver more end-to-end solutions to our customers.”

There are no regulatory approvals required and the transaction is expected to close within a month, subject to fulfilment of operational conditions precedent.

The transaction is expected to be value accretive from the first year, the statement said. 

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