Mumbai-based logistics services provider Aegis Logistics Ltd is selling 40 per cent stake in its Singapore-based wholly-owned subsidiary Aegis Group International Pte Ltd to Itochu Petroleum Co (Singapore) Pte Ltd for $5.85 million, as per a stock market disclosure.
Itochu Petroleum Co is a wholly-owned subsidiary of Itochu Corporation, a Japanese multinational trading group specialising in oil & gas, metals and other commodities.
The deal is to form a JV for LPG sourcing business. It would strengthen Aegis’ position in LPG sourcing, supply and shipping and also support the company in building new LPG import terminal capacity in the future.
This would be Itochu’s third acquisition related to India. Earlier, the firm acquired minority stake in Gurgaon-based Affle India Pvt Ltd, a mobile media company and in Mumbai-based plastic packaging products manufacturer Narendra Plastic Pvt Ltd, in 2010 and 2008 respectively.
Incorporated in 1956, Aegis Logistics, is one of the country’s leading oil, gas and chemical logistics firm with five distinct but related business segments including liquid handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations to deliver products and services.
The firm’s clientele portfolio includes Bharat Petroleum, Hindustan Petroleum, Reliance Industries, Caltex, Supreme Industries among others.
Shares of Aegis Logistics were trading at Rs 388.25 each, down 3.29 per cent on BSE in a weak Mumbai market on Monday at 12.55 PM.