Aegis and Vopak have decided to join forces in India with the aim to grow together in the LPG and chemicals storage and handling business.
The new partnership, Aegis Vopak Terminals Ltd, will operate a network of eight terminals located in five strategic ports along the east and west coast of India.
With a total capacity of around 960 thousand cbm, the partnership will become one of the largest independent tank storage companies for LPG and chemicals in India.
LPG is earmarked by the Indian government to provide cleaner and safe cooking fuels for households. The partnership is well positioned for further growth, which targets mainly LPG and also chemicals and industrial terminal opportunities. This investment is another step for Vopak towards its strategy to allocate capital to grow in gas markets.
“This joint venture with Vopak will accelerate the growth of Aegis in the terminals business and has the potential to allow Aegis to diversify into new areas of gas storage such as LNG and other energy projects including renewables in partnership with the world’s leading independent tank storage company. We expect the deal to be significantly earnings enhancing for Aegis shareholders due to the deployment into growth opportunities of the combined financial firepower of the two groups and management in the terminals business,” said Raj Chandaria, chairman of Aegis Logistics Ltd.
“This is an investment in a growth market and by joining forces with Aegis we aim to deliver growth over the next ten years in line with the new joint ventures’ and India’s ambition for LPG,” added Eelco Hoekstra, chairman of the executive board and CEO of Royal Vopak. “We are very excited for this new partnership. Aegis is a reputed local partner with a ready organisation and proven track record of conceiving and executing tank farm assets in strategic locations along the Indian coastline.”
The transaction is expected to close early 2022, subject to customary closing conditions.
For more information visit www.vopak.com
