ADNOC Logistics and Services (ADNOC L&S), a global energy maritime logistics company, has entered into an agreement to acquire Navig8 TopCo Holdings Inc. (Navig8), an international shipping pool operator and commercial management company with an owned fleet of 32 modern tankers and a presence in 15 cities across five continents.
The agreement will accelerate the Company’s global expansion as it progresses toward its medium-term strategic growth investment target, just one year after its listing. It is subject to the usual regulatory approvals.
Under the terms of the agreement, ADNOC L&S will acquire 80 percent of Navig8 for $1.04 billion (AED3.8 billion) with economic ownership transfer effective from 1 January 2024, and further acquire the remaining 20 percent ownership in 2027 for a deferred consideration of $335 million to $450 million (AED1.2 billion to AED1.7 billion).
Captain Abdulkareem Al Masabi CEO – ADNOC L&S
“This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Navig8’s presence in 15 international cities, a fleet of tankers, and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.”
According to the statement, the acquisition will be immediately value accretive, aligning with the ADNOC L&S transformational growth strategy and investment target. The first full year of investment is projected to boost earnings per share by at least 20 percent for ADNOC L&S shareholders.
Nicolas Busch, CEO of Navig8, said that, “Navig8 is excited by ADNOC L&S’ investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years making this partnership possible.”
“The opportunity to work collaboratively with ADNOC L&S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector. This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group. We are very proud to support ADNOC L&S as they increase their global footprint,” Busch added.
