Adnoc closes Navig8 acquisition, secures more funding for investments: Adnoc L&S has finalized its acquisition of an 80% stake in Navig8 in a USD 1.04 bn transaction, with a contractual agreement to acquire the remaining 20% in mid-2027 for between USD 335 mn and USD 450 mn, according to a press release (pdf). The remaining 20% is contingent on EBITDA delivery ad-interim, payable at that time, the statement added.

Adnoc’s logistics arm also inked a USD 1.1 bn to USD 2 bn hybrid capital instrument (HCI) to fund its investments, with nearly USD 1 bn of the HCI used to fund the acquisition of Navig8, according to a separate press release (pdf). That first drawdown bears an all-in pricing below the Secured Overnight Financing Rate (SOFR) plus 150 basis points. The remaining USD 900 mn will be available to be drawn by 31 December 2026 to fund new — and previously announced — investments.

ADVISORS- The facility was arranged and led by Societe Generale, with participation from Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA and DBS Bank.

The acquisition is a boon for Adnoc L&S: The first full financial year following the acquisition is expected to see a minimum 20% boost to Adnoc L&S’ earnings per share in 2025, the statement said. The acquisition will also boost Adnoc L&S’ services portfolio to include bunker trading, pooling, and other services, and expand its footprint to Navig8’s 15 global locations. It is also expected to save Adnoc L&S some USD 100 mn per year in technical management costs and costs associated with bunkering operations.

REMEMBER- The European Commission approved Adnoc L&S’ acquisition of an 80% stake in Navig8 back in December and its subsidiary Integr8 for USD 1 bn, with a deferred payment for the remaining 20% in 2027.

OTHER M&A NEWS-

Shuaa offloads Saudi hospitality assets: Shuaa Capital sold its Saudi hospitality asset portfolio, managed by its subsidiary Shuaa Capital Saudi Arabia, to Sumou Holding for SAR 515 mn (c. AED 504 mn), according to a DFM disclosure (pdf). The portfolio comprises three hospitality assets in Riyadh, Jeddah, and Dammam.

What Shuaa stands to gain: Shuaa, which holds a 33% stake in the portfolio, expects to generate AED 19.6 mn in proceeds from the transaction, to be allocated toward reducing liabilities and strengthening its balance sheet, the statement reads.

REMEMBER- Shuaa has been undergoing major restructuring after substantial losses in 2023. Shuaa reached an agreement with bondholders in April to extend the payment terms for some USD 150 mn worth of bonds, and appointed a new management team with Wafik Ben Mansou as CEO as part of its capital optimization plan. The investment bank has fully settled around AED 500 mn in margin facilities with multiple UAE banks. Shuaa also finalized an agreement with its senior creditor to restructure AED 208 mn in outstanding facilities.

And there’s more to come: The company approved the issuance of two tranches of mandatory convertible bonds, with a total maximum value of AED 425.5 mn, last month, after revealing plans earlier in May to issue a total of AED 642.5 mn of mandatory convertible bonds as part of its capital optimization plan.

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