ADNOC Logistics and Services (ADNOC L&S) has announced an agreement to acquire Navig8 TopCo Holdings Inc. (Navig8), an international shipping pool operator and commercial management company. ADNOC L&S will acquire 80 percent of Navig8 for AED3.8 billion ($1.04 billion) with an economic ownership transfer effective from January 1, 2024. Moreover, it will acquire the remaining 20 percent ownership in 2027 for a deferred consideration of AED1.2 billion to AED1.7 billion.
The agreement, subject to customary regulatory approvals, will accelerate ADNOC L&S’s global expansion as it works toward its medium-term strategic growth investment target, just one year after its listing.
Investment to boost earnings
ADNOC L&S’s acquisition of Navig8, which owns a fleet of 32 modern tankers that operate in 15 cities across five continents, will boost the company’s earnings per share by a least 20 percent for shareholders during the first full year of investment.
In addition, Navig8 recorded over $400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023, which is around 44 percent of ADNOC L&S’ EBITDA during the same period.
Therefore, ADNOC L&S will unlock remarkable value through cost-saving synergies with a saving target of more than $100 million per year through optimizing technical management costs and bunker spending.
“The addition of Navig8’s presence in 15 international cities, a fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company,” commented Captain Abdulkareem Al Masabi, CEO of ADNOC L&S.
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Blue-chip customer base to expand
ADNOC L&S’s acquisition of Navig8 will significantly expand the company’s international profile and blue-chip customer base. ADNOC L&S’ service offering will include pooling, commercial management, bunker trading, technical management and ESG-focused digital solutions.
For his part, Nicolas Busch, CEO of Navig8, stated: “The opportunity to work collaboratively with ADNOC L&S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector. This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group.”
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