ADNOC L&S buys 80% of Navig8 TopCo for $1 billion and aims to own it fully by 2027

BY THE ARAB TODAY Jan 08, 2025

ADNOC L&S buys 80% of Navig8 TopCo for $1 billion and aims to own it fully by 2027
ADNOC L&S buys 80% of Navig8 TopCo for $1 billion and aims to own it fully by 2027

ADNOC L&S buys 80% of Navig8 TopCo for $1 billion and aims to own it fully by 2027

ADNOC Logistics and Services (ADNOC L&S) announced on Wednesday that it has bought 80% of Navig8 TopCo Holdings for $1.04 billion (AED 3.8 billion). The company plans to buy the remaining 20% by mid-2027.

Acquisition Details

  • ADNOC L&S will buy the remaining 20% of Navig8 for $335 million to $450 million (AED 1.2 billion to AED 1.7 billion), depending on earnings (EBITDA) during the interim period. The payment will be made at that time, according to a statement by ADNOC L&S.
  • Navig8 is a global shipping company that manages 32 modern tankers and operates in 15 cities across five continents. The Navig8 Group also invests in technical management companies, a marine fuel provider serving over 1,000 ports, and other marine-related businesses.
  • ADNOC L&S said this deal is an important step in its growth strategy, making it a stronger global energy logistics company. It also opens up new opportunities for expansion into international markets, following the 2022 acquisition of Zakher Marine International (ZMI).
  • In July 2022, ADNOC L&S placed orders with two South Korean shipbuilders, Samsung Heavy Industries and Hanwha Ocean, for eight new LNG carriers worth up to $2.5 billion (AED 9.2 billion).

Important Quote

ADNOC L&S CEO Captain Abdulkareem Al Masabi said, “By combining Navig8’s large fleet and global reach with our operations, we can improve our services and create great value for both customers and shareholders.”

Benefits and Advantages

The purchase is expected to increase ADNOC L&S’s earnings per share (EPS) by at least 20% in 2025 compared to last year. Additionally, the company aims to save at least $20 million (AED 73.4 million) per year through combined efficiencies starting in 2026.

Published: 8th January 2025

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