Aegis Logistics forms JV with Vopak for operating LPG & chemical terminals in India

The partnership is well-positioned for further growth, which targets mainly LPG along with chemicals & industrial terminal opportunities.

Aegis Logistics Limited and Vopak (Netherlands) have decided to join forces in India with an aim to grow together in the LPG, chemicals storage and handling business. The transaction is expected to close by early 2022, subject to customary closing conditions. 

The new partnership, Aegis Vopak Terminals Ltd (AVTL) will operate a network of terminals that are currently located in five strategic ports along the east & west coast of India. With a total capacity of around 9,60,000 m3, the partnership will become one of the largest independent tanks storage companies for LPG and chemicals in India. 

The partnership is well-positioned for further growth, which targets mainly LPG along with chemicals & industrial terminal opportunities. LPG is earmarked by the Indian government to provide cleaner and safe cooking fuels for households. 

The enterprise value for Vopak’s shareholding in the joint venture will amount to €200 million. In addition to a net consideration at the closing of €115 million, Vopak and Aegis have agreed to a payment of a minimum €18m and up to a maximum of €40m payable to Aegis via a call and/or put option in 2025. Aegis will receive total gross pre-tax cash proceeds from the sale of up to Rs 2,766 crore. 

On Tuesday, the stock of Aegis Logistics opened a gap-up 6.1 per cent at Rs 385 and surged 8.6 per cent to Rs 394.40 from its previous close of Rs 363.05 on BSE. However, at 10:46 a.m., it was trading down by 3.5 per cent at Rs 350.50.