Aegis Vopak Terminals will become the largest independent tank storage company for LPG and chemicals in India. LPG is earmarked by the Indian government to provide cleaner and safer cooking fuels for households. Since the announcement in July 2021, 3 additional terminals with an additional capacity of 490 thousand cbm are being included in the partnership. The partnership operates a network of 11 terminals that are located in five strategic ports along the east and west coast of India with a total capacity of approximately 1.5 million cbm.
The joint venture is well positioned for further growth, which targets mainly LPG but also chemicals, LNG and industrial terminal opportunities.
Vopak financials
Vopak’s net consideration at closing changed from EUR 115 million announced in July 2021 to EUR 137 million. The amount has increased as a result of foreign exchange movements of EUR 12 million and EUR 10 million for the three additional terminals and additional growth projects having become part of the transaction. There are no material changes to the previously communicated values for equity IRR, ROCE and EBITDA multiples. Normal Purchase Price Allocation (PPA) accounting will apply, including recognition of goodwill as part of the carrying amount of the joint venture and associate.The expected accounting impact of the deconsolidation of CRL, among others due to recycling of historical unrealized currency translation losses from other comprehensive income, will be recorded in 2Q 2022. The financial results of this partnership will be included in Vopak’s 1H 2022 results.
Link to the earlier announcement in July 2021.
