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Adani Ports to buy marine services firm Ocean Sparkle for Rs.1,700-Cr

BSE Announcement   Economic Times  

Publicly-listed, Ahmedabad-based Adani Ports and Special Economic Zone Ltd (APSEZ) is to buy a 100% stake in Hyderabad-based marine services firm Ocean Sparkle Ltd (OSL) at an OSL is valued at an enterprise value of INR 1,700 Cr. Moelis & Company is the financial advisor to the buyer. Ocean Sparkle, with an asset base of 94 owned vessels and 13 third-party owned vessels, is engaged in towage, pilotage, and dredging. The company was established in 1995 by a group of marine technocrats with P Jairaj Kumar as the Chairman and MD. (Jairaj Kumar will continue as the Chairman of the OSL board, post deal.) The company has presence in all the major ports, 15 minor ports and all the 3 LNG terminals in India. OSL has contracts ranging from 5 to 20 years (average length being ~7 years) with its existing clients. The contracts are on Take or Pay (TOPA) basis. Over the years, OSL has built and deployed a team of 1,800 personnel across India. It has significant experience in global maritime servicing through its operations in Oman, Saudi Arabia, Sri Lanka, Qatar, Yemen and Africa. OSL is expected to report revenue of ~INR 600 Cr, EBITDA of ~ INR 310 Cr and PAT of ~ INR 135 Cr for FY22. Around 92% of OSL's total revenue was contributed by marine services (Towage & Pilotage) and the remaining 8% is from dredging and other offshore services combined. The net debt to EBITDA ratio is less than 1x. APSEZ's acquisition of OSL is being concluded at an EV/FY23E EBITDA of 5.7x

From the Venture Intelligence PE-VC Deal Database: Between Dec-2002 and Jun-2013, OSL had raised over USD 100 M from Infrastructure India Holdings Fund, StanChart PE, IFC, India Equity Partners, EQ India and Eredene Capital (which has exited completely in Jun-13). (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)