Adani Ports and Special Economic Zone Ltd (APSEZ), through its subsidiary, The Adani Harbour Services Ltd (TAHSL), has entered into a definitive agreement for the acquisition of a 100 per cent stake in Ocean Sparkle Ltd (OSL), India’s leading third-party marine services provider.
OSL ranks 1st in India and 11th globally in providing end-to-end marine services. The Company has a presence in all the major ports, 15 minor ports, and three LNG terminals in India.
Key activities carried by OSL 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 is 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,” APSEZ said in a statement.
“Given the synergies of OSL and Adani Harbour Services, the consolidated business is likely to double in five years with improved margins, thereby creating significant value for APSEZ’s shareholders.” said Mr Karan Adani, CEO and Whole-time Director, APSEZ.
“This acquisition not only provides APSEZ a significant share of India’s marine services market but also provides us a platform for building presence in other countries, thereby facilitating APSEZ’s journey towards becoming the largest port operator globally by 2030 and largest integrated transport utility in India,” he added.
According to the Company, OSL has long-standing relationships with its existing clients, with five to 20 years contracts. Further, the contracts are on a Take or Pay (TOPA) basis, thereby providing robustness to OSL’s business model.
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.