Tristar to acquire majority stake in HG Storage International Limited in deal valued at USD 215 million
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).