ADNOC L&S splashes initial US$1Bn to acquire Navig8

United Arab Emirates (UAE)-based ADNOC Logistics & Services (ADNOC L&S) said it has reached an agreement to acquire Singapore-headquartered Navig8 Group (Navig8). 

Majority state-owned, but publicly listed maritime offshore and energy logistics company ADNOC L&S said the deal to take over privately held maritime integrated services supplier Navig8 will be processed in two tranches.

Initially, an 80% stake will be taken by ADNOC L&S for US$1.04Bn and backdate ADNOC L&S’ economic ownership of Navig8 to 1 January 2024. The second tranche of funds for the remaining 20% stake in Navig8’s owned, operated, managed and chartered fleet and maritime operations business will be processed in 2027 as a deferred consideration estimated at a value of US$335-450M. 

The final tallies revealed by ADNOC L&S broadly match the rumours of a Navig8 sale that surfaced early in 2024. Navig8 currently lists more than 60 vessels in its fleet of bunker, chemical, product, LR, MR, Aframax and VLCC tankers. 

ADNOC L&S’ move on Navig8 follows an initial public offering (IPO) of shares on the Abu Dhabi Securities Exchange in 2023 that was one of the largest in the region for the year. The IPO represented a 19% stake in the company’s total shares and raised nearly US$800M, valuing the company at more than US$4Bn. 

The planned Navig8 acquisition is a part of ADNOC’s stated commitment to invest more than US$5Bn in expansion in the "medium-term".

ADNOC L&S chief executive Captain Abdulkareem Al Masabi said, “At the time of our public listing one year ago, we made a commitment to our shareholders and the market to accelerate our strategic investments over the medium term. We are progressing towards achieving our strategic growth investment target with major expansions of our fleet and global footprint. The acquisition of Navig8, combined with our recent shipbuilding activities, demonstrates that ADNOC L&S is delivering on our strategy to maximise shareholder value.”

In Q1 2024, ADNOC L&S reported a 34% increase in net profit and a year-long doubling of its share price.

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