ADNOC buys Navig 8 in a deal worth over $1bn
ADNOC Logistics & Services, the shipping and maritime logistics arm of the Abu Dhabi National Oil Company, has announced an agreement to acquire 80% of UK-based tanker owner and pool operator Navig8 for AED3.8bn ($1.03bn).
Under the terms of the agreement, ADNOC L&S will acquire the remaining 20% ownership in 2027 for a deferred consideration of $335m to $450m.
The acquisition is projected to boost earnings per share by at least 20% for ADNOC L&S shareholders in the first full year of investment.
Navig8 has a global footprint in 15 cities across five continents and an owned fleet of 32 modern tankers. The acquisition of the company, the Abu Dhabi-based firm believes, will expand ADNOC L&S’ blue-chip customer base and enable it to offer new services such as pooling, commercial management, bunker trading, and technical management.
Following the successful completion of the acquisition, the Navig8 management team will continue to operate the business on a day-to-day basis, while maintaining its current operations under the existing Navig8 brand.
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Last year, ADNOC sold a 15% stake in ADNOC L&S through an initial public offering on the Abu Dhabi stock exchange. The IPO was 163 times oversubscribed, making it one of the most in-demand IPOs worldwide at the time of listing. Since listing, the share price has appreciated more than 100%. At the time of the offering, ADNOC L&S committed to investing between $4bn and $5bn over the medium term.
Following a strong first quarter, the company stated that it intends to invest over $5bn in energy-related maritime logistics over the medium term, to meet growing demand in the UAE and beyond.
“We are progressing towards achieving our strategic growth investment target with major expansions of our fleet and global footprint. The acquisition of Navig8, combined with our recent shipbuilding activities, demonstrates that ADNOC L&S is delivering on our strategy to maximize shareholder value,” said Abdulkareem Al Masabi, CEO of ADNOC L&S.
ADNOC L&S operates a diversified fleet of over 240 owned and chartered vessels and has a 25-year exclusive agreement to service all petroleum ports in Abu Dhabi.
Source: Splash 24/7
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