Agility’s subsidiary Tristar to acquire majority stake in HG Storage International Ltd in Deal Valued at $215 Million
Dubai, UAE; March 28, 2022: Tristar Transport (L.L.C.) (“Tristar”), an integrated energy logistics group headquartered in the UAE, is pleased to announce that it has signed a sale and purchase agreement with Madison Pacific Trust Limited (“Madison Pacific”) to acquire a 51 percent stake in HG Storage International Limited (“HGSI”). Madison Pacific is selling such stake as holder of a security interest in such stake granted by HNA Innovation Finance Group Co., Limited (“HNA”) to secure payment under certain notes issued by HNA. HGSI is a joint venture between HNA and Glencore Group Funding Limited, a wholly owned subsidiary of Glencore Plc (“Glencore”). Glencore is one of the world’s largest globally diversified natural resource companies.
Through this deal, Tristar will acquire a majority holding in a well-diversified portfolio of oil storage, distribution and retail assets owned by HGSI, comprising 8 operating assets across 4 key regions: Europe, the Americas, Middle East and Africa. The transaction, valued at USD 215 million, will add in excess of 3 million cubic meters of fuel storage capacity to the Tristar portfolio and extend the company’s global presence to 29 countries across the globe.
Following the transaction, Glencore will remain as a key strategic shareholder of HGSI and a joint venture partner to Tristar.
Completion of the deal is expected in the second quarter of 2022 and subject to certain regulatory filings and approvals, and stakeholder consents.
Tristar was advised by Acqua Capital (financial advisor) and Freshfields Bruckhaus Deringer (legal advisor). Madison Pacific was advised by PricewaterhouseCoopers (financial advisor) and Stephenson Harwood (legal advisor).
Tristar Group is a fully integrated energy logistics business serving the downstream oil and gas industry. It has a global presence in 21 countries across the Middle East, Africa, Asia, the Pacific and the Americas. With a proven track record of safety performance and service excellence, Tristar is a partner of choice for most national and international oil majors.
Madison Pacific, a Tricor Company, is the premier independent provider of Corporate Trustee and Debt Services. Their services include Corporate Trust and Agency, Escrow and Custody among others.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group’s operations comprise around 150 mining and metallurgical sites and oil production assets. With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore’s industrial activities are supported by a global network of more than 30 marketing offices. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. Glencore provides financing, logistics and other services to producers and consumers of commodities. Glencore’s companies employ around 135,000 people, including contractors. Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. Glencore is an active participant in the Extractive Industries Transparency Initiative. Glencore’s ambition is to be a net zero total emissions company by 2050.