(MENAFN- The Arabian Post)
ADNOC Logistics & Services Plc (ADNOC L&S), a prominent player in the global energy maritime logistics sector, has secured a hybrid capital instrument valued between $1.1 billion and $2 billion. This financial move is strategically aligned with the company's ambitious growth and investment plans.
The initial drawdown from this facility amounts to $1.1 billion, with an additional $900 million available for future investments until December 31, 2026. A significant portion of this capital, approximately $1 billion, is earmarked for the acquisition of Navig8 TopCo Holdings, a leading international shipping pool operator and commercial management firm.
ADNOC L&S has completed the purchase of an 80% stake in Navig8 for $1.04 billion, with a contractual agreement to acquire the remaining 20% by mid-2027. This strategic acquisition is set to enhance ADNOC L&S's service offerings by integrating Navig8's extensive fleet and global presence, thereby expanding its commercial reach and technical management capabilities.
Since its initial public offering in June 2023, ADNOC L&S has committed over $5 billion towards growth investments, reflecting its dedication to becoming a leading energy maritime and logistics company. The company's share price has seen a substantial increase of approximately 176% since its listing, closing at AED5.55 as of January 7, 2025.
The hybrid capital facility was arranged and led by Société Générale, with participation from financial institutions including Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA, and DBS Bank. This collaboration underscores the strong market confidence in ADNOC L&S's strategic direction and financial health.
The acquisition of Navig8 is anticipated to boost ADNOC L&S's earnings per share by at least 20% in 2025 compared to 2024. Additionally, the company expects to realize significant synergies, estimated at a minimum of $20 million annually starting in 2026.
See also
ADNOC's XRG Secures Majority Stake in Covestro with €14.7 Billion Acquisition
ADNOC L&S's growth strategy is further evidenced by its recent investments in environmentally efficient vessels, with approximately $2 billion committed to this initiative. The company has been proactive in reducing its environmental impact, operating 13 vessels on biofuels since 2020.
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