ADNOC Transfers Tankers to Navig8 in Strategic Takeover
Deal News | Jan 21, 2025 | Zawya
Abu Dhabi National Oil Company's logistics arm, ADNOC Logistics & Services (ADNOC L&S), has transferred its tanker business to Navig8 following its acquisition of an 80% stake in the company for over $1 billion, with plans for workforce reductions. This marks a strategic move for ADNOC as it continues its expansion endeavors across chemicals and natural gas sectors, alongside the logistics and services domain. ADNOC L&S raised approximately $770 million from an IPO in 2023 and has listed several units as part of its expansion strategy. The acquisition of Navig8 is part of ADNOC's strategy to enhance customer service capabilities and foster innovation in a competitive market. The funding for the acquisition primarily stems from a hybrid capital instrument, with ADNOC L&S having made a first drawdown of $1.1 billion. ADNOC L&S plans to acquire the remaining 20% stake in Navig8 for $335 million to $450 million by mid-2027, a move set to boost earnings per share by at least 20% this year and save $20 million annually starting next year. The company emphasizes its commitment to minimize job impacts while streamlining operations.
Sectors
- Oil and Gas
- Maritime
- Finance
Geography
- United Arab Emirates – ADNOC is based in Abu Dhabi, UAE, and is undertaking a significant strategic reorganization and expansion within this region.
- Singapore – Navig8, headquartered in Singapore, represents the international scope of the acquisition and relevance in Asia.
Industry
- Oil and Gas – The acquisition involves ADNOC, a major player in the oil and gas sector, expanding its logistics and service capabilities through Navig8.
- Maritime – The transaction centers around ADNOC's logistics division transferring tanker operations to Navig8, a company with substantial management of maritime vessels.
- Finance – Financial intricacies such as hybrid capital instruments for funding the acquisition highlight the financial industry’s role.
Financials
- 1.04 billion USD – The value of ADNOC L&S's initial acquisition of an 80% stake in Navig8.
- 335 to 450 million USD – The estimated price range for ADNOC L&S to acquire the remaining 20% stake in Navig8 by mid-2027.
- 20 million USD – The annual savings ADNOC L&S expects starting next year from the acquisition of Navig8.
- 1.1 billion USD – The first drawdown from the hybrid capital instrument issued by ADNOC L&S to fund the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Abu Dhabi National Oil Company (ADNOC) | Parent Company | Company | A state-owned oil company of Abu Dhabi, UAE, expanding its logistics operations through acquisitions. |
| ADNOC Logistics & Services (ADNOC L&S) | Purchaser; Acquirer of Navig8 | Company | ADNOC's subsidiary responsible for logistics and services, spearheading the acquisition of Navig8. |
| Navig8 | Target Company | Company | An international shipping company headquartered in Singapore, involved in the management of a large fleet of vessels. |
| Reuters | Source of information | Company | Reuters provided reporting and dissemination of information regarding this strategic acquisition. |