UAE’s Tristar to acquire 51% stake in HGSI for $215mn

By Amirtha P S, Desk Reporter
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Tristar Transport, UAE’s fully integrated energy logistics business serving the downstream oil and gas industry, has signed a sale and purchase agreement with Madison Pacific Trust Limited, UK-based financial services company, to acquire a 51 percent stake in HG Storage International Limited (HGSI). 

HGSI is a joint venture between HNA and Glencore Group Funding Limited, a wholly-owned subsidiary of Glencore Plc, one of the world’s largest globally diversified natural resource companies. It was created to consolidate Glencore’s petroleum products storage and logistics businesses, with assets located in trading hubs. 

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 like Europe, the Americas, the Middle East and Africa.

The transaction, valued at $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 globally. Tristar currently has a worldwide presence in 21 countries across the Middle East, Africa, Asia, the Pacific and the Americas.

Following the transaction, Glencore will remain as a key strategic shareholder of HGSI and a joint venture partner to Tristar. The deal is expected to be completed in the second quarter of 2022 and subject to certain regulatory filings and approvals, and stakeholder consent.

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).

Related: Saudi-based Sisco to acquire 31.7% stake in UAE’s Green Dome for $12mn