(MENAFN) ADNOC Logistics and Services, listed on the Abu Dhabi Securities Market, has announced an agreement to acquire Navig8 Topco Holding Company, a prominent global maritime shipping and commercial activities firm with a fleet of 32 modern tankers. Operating across 15 cities on five continents, this acquisition marks a significant step in ADNOC Logistics and Services' strategic growth plans. The agreement, which is subject to customary regulatory approvals, aims to accelerate the company's global expansion and medium-term strategic growth investments, following just one year after its listing.

Under the terms of the agreement, ADNOC Logistics and Services will acquire 80 percent of Navig8 for 3.8 billion dirhams (USD1.04 billion), with the economic ownership transfer effective from January 1, 2024. The remaining 20 percent will be acquired in 2027 for a deferred amount between 1.2 and 1.7 billion dirhams (USD335 to USD450 million). This acquisition is anticipated to immediately add value, aligning with ADNOC Logistics and Services' strategy for transformational growth and strategic objectives. The first full year of investment is expected to deliver cumulative profits of at least 20 percent of earnings per share for ADNOC Logistics and Services shareholders. In 2023, Navig8 achieved EBITDA exceeding 1.5 billion dirhams (USD400 million), which is 44 percent of ADNOC Logistics and Services' EBITDA for the same period.

The acquisition is also projected to yield significant cost savings, estimated at over 375 million dirhams (USD100 million), by leveraging Navig8's expertise in maritime shipping clusters, bunkering, and technical management. Navig8’s extensive global presence and its fleet of 32 modern tankers will enhance ADNOC Logistics and Services' global standing and expand its customer base. Additionally, the acquisition introduces new capabilities and services to ADNOC Logistics and Services, including ship pools, business operations management, tanker fuel trading, technical management, and digital solutions focused on environmental, social, and corporate governance.

This strategic move not only reinforces ADNOC Logistics and Services' position in the global market but also supports its goal of achieving substantial growth and enhanced service offerings, positioning the company for continued success in the competitive maritime industry. 

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