Adani Ports buys 100% stake in marine services firm Ocean Sparkle for ₹1,530 cr | Whuff News


Adani Ports and Special Economic Zone Ltd (APSEZ) agreed to buy Ocean Sparkle Ltd (OSL) for 1,530 crore as part of a strategy to dramatically increase its presence in the marine services market in India and abroad and become the world’s largest port operator by 2030.

APSEZ will carry out the acquisition through its unit The Adani Harbor Services Ltd (TAHSL), it said in a stock exchange filing on Friday.

OSL, India’s leading third-party marine service provider, facilitates key activities such as towing, steering and dredging.

APSEZ, owned by billionaire Gautam Adani, will pay 1,135.30 crore for direct acquisition of 75.69% stake in OSL and another 394.87 crore for indirect acquisition of 24.31% stake.

The deal is expected to be completed within a month.

With 94 owned vessels and 13 third party owned vessels, OSL has an enterprise value of 1,700 crore, with 300 crore free cash. The company was founded in 1995 by a group of marine technocrats with P. Jairaj Kumar as chairman and managing director, who would continue as chairman of the OSL board.

“Given the synergy of OSL and Adani Harbor Services, the combined business is likely to double in five years with better margins, thereby creating significant value for APSEZ shareholders.” said Karan Adani, Chief Executive Officer and whole time director, APSEZ.

“OSL has long-standing relationships with existing customers, with contracts ranging from 5 to 20 years (average contract duration is ~7 years),” the statement said.

OSL’s contracts are on a take-or-pay (Topa) basis, giving stability to its business model. It operates in all major ports, 15 minor ports and all three LNG terminals in India.

OSL is expected to record a revenue of 600 crore, earnings before interest, tax, depreciation and amortization (Ebitda) 310 crore, and profit after tax of Rs 135 crore in the financial year just ended, according to the statement. OSL has a net debt to Ebitda ratio of less than 1x, he said. Moelis & Company is the financial advisor to Adani for the deal.

Adani Harbor Services expects to double its revenue and Ebitda to approx 5,000 crore and 4,000 crore, respectively, by FY27 thanks to post-acquisition operational and financial synergies.

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