M&A

M&A

Adani Ports acquires 49% stake in Indian Oiltanking for Rs.1,050-Cr

BSE Filing   Business Line  

Publicly listed Adani Ports and Special Economic Zone Ltd (APSEZ) has acquired a 49.38 % equity stake (from Oiltanking India GmbH) in third party liquid tank storage player Indian Oiltanking Ltd (IOTL) for INR 1,050 crore in cash. The deal includes the acquisition of Oiltanking GmbH's 10% equity stake in IOT Utkal Energy Services Ltd, a subsidiary of IOTL. Ernst & Young acted as the exclusive M&A advisor to Oiltanking. IOTL is engaged in the business of liquid tank terminalling services including O&M contracts. Over the last 26 years, IOTL has built a network of six terminals across five states with a total capacity of 2.4 million KL (owned capacity of 0.5 million KL and BOOT capacity of 1.9 million KL) for storage of crude and finished petroleum products. The owned facilities include Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh and Goa terminal. The BOOT terminal with Indian Oil Corporation Ltd (IOCL) is at Paradip (Odisha) and O&M contracts with IOCL are at JNPT (Maharashtra) and Dumad (Gujarat). The company also has a biogas plant of 15 TPD capacity in Namakkal (Tamil Nadu). It also has a biogas plant of 15 TPD capacity in Namakkal, Tamil Nadu. The majority of IOTL's tank capacity is contracted by reputed PSUs and oil majors. The company recently signed a 25-year BOOT contract with Numaligarh Refinery Ltd for the construction, operation, and maintenance of 0.6 million KL crude storage tanks at the Paradip Port. In FY22, IOTL's revenue and EBITDA were INR 526 Cr and INR 357 Cr respectively. The acquisition price of INR 1,050 Cr implies an EV/EBITDA multiple of ~8x on FY22 numbers (The FY22 consolidated turnover of IOTL was INR 611.55 Cr, compared to INR 582.53 Cr in FY21) Oiltanking India GmbH is a wholly-owned subsidiary of Germany-based Oiltanking GmbH. The deal makes APSEZ India's largest third-party liquid tank storage player taking its oil storage capacity to 3.6 million KL.