Adani Ports to acquire 100% stake in Ocean Sparkle

Through its subsidiary - The Adani Harbour Services

Adani Ports and Special Economic Zone (APSEZ) through its subsidiary, The Adani Harbour Services (TAHSL), has entered into a definitive agreement for acquisition of 100% stake in Ocean Sparkle (OSL), India's leading thirdparty marine services provider. Key activities carried by the company include towage, pilotage, and dredging. With an asset base of 94 owned vessels and 13 third-party owned vessels, OSL is a market leader. OSL is valued at an enterprise value of Rs 1,700 crore with Rs 300 crore of free cash in the company.

OSL's attractive capital structure, quality operations and sustainable cash flows are reflected in its attractive credit rating (AA- by ICRA). The Company is expected to have revenue of Rs ~600 crore, EBITDA of Rs ~310 crore and PAT of Rs ~135 crore in FY22. Around 92% of OSL's total revenue was contributed by marine services (Towage & Pilotage), and the remaining 8% is from dredging and other offshore services combined. The net debt to EBITDA ratio is less than 1x. APSEZ's acquisition of OSL concluded at an attractive EV/ FY23E EBITDA of 5.7x.

On the back of operational and financial synergies, the consolidated revenue and EBITDA of Adani Harbour Services is expected to jump ~100% and reach around Rs 5,000 crore & Rs 4,000 crore respectively by FY27.

Powered by Capital Market - Live News