Aegis Vopak Terminals Limited (AVTL) has announced a series of strategic moves that could significantly reshape its position in the LPG storage and logistics sector. The company has dispatched a postal ballot notice to shareholders, seeking approval for three key resolutions that include a major acquisition and a board appointment.

Proposed Acquisition of Hindustan Aegis LPG Limited

AVTL is planning to acquire a 75% stake in Hindustan Aegis LPG Limited (HALPG), a move that would make HALPG a subsidiary of AVTL. This acquisition is structured as two separate but related transactions:

1. Acquisition of 51% equity stake in HALPG from Aegis Gas (LPG) Private Limited (AGPL) for up to INR 703.00 crores.
2. Acquisition of 24% equity stake in HALPG from Vopak India B.V for up to INR 331.00 crores.

These transactions are valued at 113.19% and 53.29% of AVTL's consolidated turnover, respectively, making them material related party transactions requiring shareholder approval.

Strategic Rationale for the Acquisition

The proposed acquisition of HALPG is aligned with AVTL's strategic objectives:

1. Consolidation of LPG Throughput: The acquisition aims to bring HALPG's Haldia terminal under AVTL's umbrella, consolidating LPG throughput services from various locations across India (excluding the Mumbai Terminal).

2. East Coast Access: HALPG's terminal in Haldia, West Bengal, could give AVTL a strategic presence on India's East coast, complementing its existing terminals on the West coast.

3. Capacity Expansion: The acquisition would add 25,000 Metric Tons of static capacity, potentially increasing AVTL's total capacity to 225,800 MT across Pipavav, Kandla, Mangalore, and Haldia locations.

4. Operational Synergies: HALPG's Haldia terminal, which handled 1.46 million MT of throughput in FY 2024-25, has the potential to achieve a maximum throughput capacity of around 2.5 million MT.

Board Appointment

In addition to the acquisition, AVTL is seeking shareholder approval for the appointment of Mr. Wimal Roy Shylindra Kumar Samlal as a Non-Executive Non-Independent Director. Mr. Samlal, currently serving as the senior vice president – Finance, Asia and Middle East in Vopak Asia Pte Ltd, Singapore, brings over 28 years of experience in financial activities to the board.

Voting Process

The company has initiated an e-voting process for these resolutions, which will run from November 1, 2025, to November 30, 2025. Results are expected to be announced by December 2, 2025.

Financial Implications

The proposed transactions are based on independent valuation reports prepared by Deloitte Haskins Sells, ensuring arm's length pricing. AVTL plans to finance the acquisition through internal accruals and ongoing fund-raising exercises.

These strategic moves by Aegis Vopak Terminals Limited reflect the company's ambition to strengthen its position in the LPG logistics sector and capitalize on the growing LPG consumption trend in India. Shareholders will play a crucial role in determining the future direction of the company through their votes on these significant proposals.

Aegis Vopak Terminals Ltd. has announced a significant move to expand its LPG storage and terminalling business by acquiring a majority stake in Hindustan Aegis LPG Ltd. (HALPG). The company's board of directors has approved the acquisition of a 75% equity stake in HALPG for Rs 1,130 crore, subject to shareholders' approval.

Acquisition Details

About Hindustan Aegis LPG Ltd.

HALPG, incorporated in 1994, specializes in the storage and terminalling of LPG and allied products. The company has shown steady growth in recent years:

Strategic Implications

This acquisition is set to strengthen Aegis Vopak's position in the LPG storage and terminalling sector, particularly at its Haldia location in West Bengal. The move aligns with the company's strategy to expand its terminalling business, focusing on LPG storage, bottling, and terminalling activities.

Transaction Details

• The acquisition involves purchasing 6,21,146 equity shares from Aegis Gas (LPG) Private Limited and 2,92,303 equity shares from Vopak India B.V.
• Each equity share has a face value of Rs 10.
• The transaction is classified as a related party transaction, with both sellers being part of Aegis Vopak's promoter group.
• The deal is stated to be conducted on an arm's length basis.

Market Impact

Upon completion of this acquisition, HALPG will become a subsidiary of Aegis Vopak Terminals Ltd. This move is expected to enhance Aegis Vopak's capabilities in the LPG storage and terminalling sector, potentially strengthening its market position and operational capacity.

The announcement comes at a time when Aegis Vopak Terminals is already operating 20 tank terminals across six Indian ports, with a total storage capacity of 1.7 million cubic meters for liquid storage and 201,000 MT for LPG.

Investors and market watchers will likely keep a close eye on how this acquisition impacts Aegis Vopak's market share and financial performance in the coming years, especially given the growing importance of LPG infrastructure in India's energy landscape.