Aegis Logistics will sell 40% stake in its Singapore based wholly owned subsidiary (WOS), Aegis Group International to ITOCHU Petroleum Company, (Singapore), a wholly owned subsidiary of ITOCHU Corporation for a total consideration of $5.85 million. The transaction will be subject to customary conditions precedent including lenders/third party approvals.
In order for Aegis to strengthen its competitive position in LPG sourcing, supply and shipping and also to support the company in building new LPG import terminal capacity in the future, management proposes to establish a Joint Venture (JV) with ITOCHU Corporation, a Japanese multinational trading group specializing in oil & gas, metals and other commodities, which is also one of the big five sogo shosha general trading groups in Japan. ITOCHU Corporation is one of the largest global LPG Companies by sales volumes.
The new joint venture with ITOCHU Corporation will enable the company to significantly expand and scale up its LPG division by allying with one of the gas majors in the world. This should result in a sizeable boost to Aegis’ sales growth, earnings and size in the medium term.
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