Adani's logistics and port arm, Adani Ports and Special Economic Zone Ltd (APSEZ), has acquired Dubai-based Astro, while the power arm of Gautam Adani promoted group acquired Coastal Energen. The FMCG unit is on a $1 Billion plan for acquiring three brands of the market. In addition to these, Adani Energy Solutions Ltd has acquired the Khavda Phase-IV Part-A transmission project, aimed at evacuating 7 GW of renewable energy from Khavda Renewable Energy park in Gujarat.
Dubai's Astro
Adani Group has acquired Astro, a leading global OSV operator in the Middle East, India, Far East Asia and Africa, which is based out of Dubai. The acquisition will help Adani to expand its international footprint and diversify its business portfolio.In the end of last week, Adani Ports and Special Economic Zone Ltd (APSEZ) announced that it is acquiring 80% stake in Astro, a global offshore service vehicle operator, in an all-cash deal for $185 million, implying an EV of $235 million and EV/FY25E EBITDA at 4.4x, as per the company press release.
Tamil Nadu's Coastal Energen
In Tamil Nadu, Adani has acquired Coastal Energen, a significant player in the energy sector. This acquisition is expected to bolster Adani's energy production capabilities.Adani Power Ltd. Consortium, in which Adani Power holds 49% stake, has completed the acquisition of Tamil Nadu-based Coastal Energen Pvt. for Rs 3,330.88 crore. This acquisition was part of a resolution plan approved by the National Company Law Tribunal (NCLT). Coastal Energen owns and operates a 1,200 MW thermal power plant in Tuticorin, Tamil Nadu, which supplies 558 MW to the state distribution company, TANGEDCO, under a long-term power purchase agreement.
Khavda Renewable Energy Project
In a separate acquisition, which is of a project rather than a company, Adani Energy Solutions Ltd (AESL), formerly Adani Transmission, has been awarded the project to develop a 7 GW renewable energy evacuation transmission network in Khavda, Gujarat. This project is part of the Khavda Phase IV Part-A transmission initiative and aims to support the evacuation of renewable energy from the Khavda Renewable Energy Park, which is the world’s largest renewable energy park with a planned generation capacity of 30 GW.The $1 Billion FMCG Buying Plan
Adani's FMCG Arm, Adani Wilmar, is actively seeking to acquire three brands to strengthen its market position and expand its product offerings.Adani Wilmar is planning to invest up to $1 billion to acquire three FMCG brands. These acquisitions are part of their strategy to strengthen their presence in the packaged consumer goods market, particularly in the eastern and southern regions of India. The targeted brands specialize in spices, packaged foods, and ready-to-cook products.
These strategic acquisitions are part of Adani Group's broader plan to enhance its presence across various sectors, including energy, infrastructure, and consumer goods.
The acquisition of Coastal Energen and other energy assets has bolstered Adani’s market share in the energy sector, further solidifying its position as a leading energy producer.
Overall, these acquisitions have been seen as strategic moves to diversify and strengthen Adani’s business portfolio, which has generally been met with a positive response from the market.
Despite some controversies, such as the Hindenburg report, the Adani Group has managed to maintain investor confidence by emphasizing the robust health of its underlying assets. This has been reflected in the steady performance of its stocks.
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