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ADNOC Logistics & Services (ADNOC L&S) will fully acquire Navig8 TopCo Holdings Inc., an international shipping pool operator, for a total value of up to $1.49 billion.
The acquisition will be in two parts with 80% stake acquired for $1.04 billion, with economic ownership transfer effective from 1 January 2024, and the remaining 20% stake acquired in 2027 for a deferred consideration of $335 million to $450 million, the ADNOC subsidiary said in a bourse statement on Monday.
Navig8, which owns a fleet of 32 tankers and has a presence in 15 cities across five continents, delivered over $400 million EBITDA in 2023, equivalent to 44% of ADNOC L&S’ EBITDA in the same period, the Abu Dhabi maritime logistics services said, adding that the acquisition will be "immediately value accretive".
The first full year of investment is projected to boost "earnings per share by at least 20% for ADNOC L&S shareholders".
Following the completion of the acquisition, the current Navig8 management team will continue to operate the business on a day-to-day basis.
For Q1 2024, ADNOC L&S reported a 34% increase in net profit year-on-year, and an increase of 42% in revenues.
(Reporting by Brinda Darasha; editing by Seban Scaria)
