Adani Ports and Special Economic Zone Ltd (APSEZ), through its subsidiary, The Adani Harbour Services Ltd, has entered into a definitive agreement for the acquisition of a 100 percent stake in Ocean Sparkle Limited (OSL). It is India’s largest third-party marine services provider, for a consideration of Rs 1,530 crore.
Indian Billionaire Gautam Adani-led company will pay Rs 1,135.30 crore for the direct acquisition of 75.69 percent stake in OSL, along with Rs 394.87 crore for the indirect acquisition of 24.31 percent stake, the company said in a stock exchange filing on April 22. The transaction is expected to be completed within one month.
With an asset base of 94 owned vessels and 13 third-party-owned vessels, OSL is a market leader. OSL is valued at an enterprise value of Rs1,700 crore with 300 crores of free cash in the company. The company was established in 1995 by a group of marine technocrats with Mr. P Jairaj Kumar as the Chairman and MD, who will continue as the Chairman of the OSL board.
ADANI-OCEAN SPARKLE DEAL
Key activities carried out by the company include towage, pilotage, and dredging. With an asset base of 94 owned vessels and 13 third-party-owned vessels, OSL is a market leader.
OSL has valued at an enterprise value of Rs 1,700 crore with Rs 300 crore of free cash in the company.
The company was established in 1995 by a group of marine technocrats with P Jairaj Kumar as the Chairman and MD, who will continue as the Chairman of the OSL board.
OSL has long-standing relationships with its existing clients, with contracts ranging from 5 to 20 years (the average length of contracts is ~7 years).
Further, the contracts are on Take or Pay (TOPA) basis, thereby providing robustness to OSL’s business model. The Company has a presence in all the major ports, 15 minor ports, and all the 3 LNG terminals in India.
Over the years, OSL has built and deployed a team of 1,800 personnel across India. The Company has significant experience in global maritime servicing through its operations in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen, and Africa.
About OSL
Incorporated on July 26, 1995, Ocean Sparkle is engaged in providing port operations and management services. It includes the provision of technical management of marine crafts, harbor towage services, mooring services, pilotage services, etc. Apart from India, OSL has operated in Sri Lanka, Saudi Arabia, Yemen, Qatar, and Africa.
The company has contracts ranging from 5 to 20 years. OSL has its presence in all the major ports, 15 minor ports, and all the 3 LNG terminals in India. It has a team of 1,800 personnel across India.
OSL has an AA-credit rating by ICRA. The company is expected to have revenue of ~ Rs 600 crore, EBITDA of ~ Rs 310 crore, and PAT of ~ Rs 135 crore in FY22
