General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018.
Wedoany.com Report-Jan 21,Abu Dhabi National Oil Company's logistics arm has transferred its tankers to Navig8 after it bought 80% of the firm for more than $1 billion and will cut part of its workforce, the state oil giant said in a statement.
ADNOC Logistics & Services (ADNOCLS.AD), opens new tab, which raised nearly $770 million in an initial public offering in 2023, said in June it was buying Singapore-headquartered Navig8 as part of its growth strategy.
ADNOC has listed several of its units in recent years and pursued a string of deals to expand in nearly every part of its business, including in chemicals and natural gas.
Transferring its commercial activities to Navig8 would allow ADNOC to better serve its customers and continue innovating and growing in a highly competitive marketplace, it told Reuters late on Monday.
"We are committed to minimising impact on people, however as we streamline operations there will be a small reduction in our workforce," ADNOC added, without giving numbers.
Two sources had told Reuters that ADNOC L&S had notified customers that Navig8 would handle its chartering operations.
The $1.04 billion acquisition of Navig8 was mostly funded by a hybrid capital instrument issued by ADNOC L&S for up to $2 billion, with the first drawdown of $1.1 billion made at an all-in pricing of less than 150 basis points over the Secured Overnight Financing Rate (SOFR), ADNOC L&S said earlier this month.
The remaining amount is available to fund new or previously announced investments, it said.
ADNOC L&S has committed to buying the remaining 20% of Navig8, which owns more than 30 vessels and manages more than 85 ships, by mid-2027 for $335 million to $450 million.
The acquisition is expected to increase ADNOC L&S' earnings per share by at least 20% this year compared to last year and generate $20 million in annual savings from next year, the company said.
