Aegis Logistics to Buy Agility's Tristar Stake for USD 581 mn
Agility Global, listed in Abu Dhabi, is selling its entire 65.12% stake in Dubai-based energy logistics company Tristar to India's Aegis Logistics. Agility bought the stake 23 years ago for about USD 7 mn.
The deal values Tristar at USD 1.5 bn including debt, with equity valued at USD 882 mn. Agility will receive up to USD 581 mn: USD 425 mn at closing, USD 110 mn a year later, and a further USD 46 mn if agreed conditions are met.
Aegis is also buying smaller stakes from Gulf Investment Corporation and Diamond Holdings, which takes its total holding to 89.8% of Tristar for USD 809 mn. The agreement is expected to close in March.
Agility is keeping directly held interests in a strategic fuel storage asset that is consolidated within Tristar's financial statements. It estimates their equity value at about USD 145 mn and plans a separate sale process.
Tristar stores and moves petroleum, chemicals, aviation fuel and LNG in more than 30 countries. It runs more than 1,000 trucks, 26 ocean-going and coastal vessels and 14 tank farms.
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It also holds a majority stake in Aquarius Energy, a fuel storage joint venture with Glencore. Last year Tristar booked USD 1.4 bn in revenue.
Aegis runs LPG and bulk liquid terminals in India. Buying Tristar gives it an international fuel network based in the Gulf.
Aegis said the Tristar acquisition is expected to contribute immediately to its profitability and deliver long-term strategic benefits, with CEO Chandaria citing greater scale, business and geographic diversification, and access to a wider network of customers and partners.
Agility expects a return of more than USD 1 bn on its fuel logistics investment, an internal rate of return of 16% over the holding period. It describes the sale as its second major strategic exit, after the 2021 sale of its Global Integrated Logistics business to DSV.
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