Adnoc Logistics & Services recently finalized the significant purchase of an 80% stake in Navig8 TopCo Holdings, a premier shipping management services company, in a transaction valued at $1.04 billion. This strategic acquisition not only reinforces Adnoc L&S's status in the energy maritime logistics sector but also marks a pivotal step in expanding its operational capabilities. The deal entails a commitment to acquire the remaining 20% stake in Navig8 by mid-2027, with an estimated cost ranging from $335 million to $450 million, contingent upon EBITDA performance.
The transaction will result in the integration of 32 additional tankers into Adnoc L&S's existing fleet, thereby enhancing its service portfolio significantly. Adnoc L&S anticipates that this acquisition will increase its earnings per share (EPS) by at least 20% by 2025 compared to 2024, backed by projected annual synergies of $20 million starting in 2026. "By integrating Navig8's extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders," stated Abdulkareem Al Masabi, the chief executive officer at Adnoc L&S.
"This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company." In a related development, Adnoc L&S has entered into a hybrid capital instrument arrangement that could be worth up to $2 billion.
The initial capital drawdown amounts to $1.1 billion, with an additional $900 million accessible until December 31, 2026. Out of the total, Adnoc L&S allocated $1 billion from the hybrid instrument to finance its acquisition of Navig8. The remaining capital will be directed towards bolstering its future investments as part of its ambitious growth strategy. The financing facility, which supports this acquisition, was arranged and led by Societe Generale, with several prominent banks such as Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole, BBVA, and DBS Bank participating in this financing effort. Following the announcement and details of this acquisition, Adnoc L&S saw its shares rise by over 4% in the Abu Dhabi market late Wednesday afternoon..