Oil and gas logistics provider Aegis Logistics on Monday acquired Shell Gas (LPG) India for an undisclosed amount. Aegis Logistics, in a filing to the Bombay Stock Exchange (BSE), said that it has completed the acquisition of 3.23 crore equity shares of Shell Gas (LPG) India, making it a subsidiary of the company. It, however, did not disclose the financial details of the transaction. The transaction is now subject to regulatory approvals.
The company, on December 31, had entered into a share purchase agreement with Shell Gas (LPG) India to acquire it. Shell Gas (LPG) India has a gas infrastructure facility at Pipavav Port and an LPG filling plant in Gujarat. The company is also into wholesale importing and marketing of LPG. Aegis will import additional gas through an LPG terminal at Pipavav Port in Gujarat and enter into a new market segment for commercial LPG cylinders, along with a greater autogas presence in Gujarat. The acquisition of Shell Gas (LPG) furthers strengthen Aegis’s strong market postion in the LPG business.
“Now there are certain regulatory approvals needed and once they are through, which we hope will happen in the next 90 days, we will be able to complete the transaction financially,” Raj Chandaria, vice-chairman and managing director, Aegis Logistics, had earlier told the media.
“We also enter a new market segment where Aegis is not present, which is the commercial and industrial cylinder segment. The acquisition also helps the Aegis Autogas business, as Shell also has a presence in the autogas segment,” he added then. In the December 2009 quarter, Aegis Logistics had reported a net profit of Rs 10.93 crore with revenues to the tune of Rs 76.26 crore. The company has an operating margin (OPM) of 21.87%. Shares of Aegis Logistics on the Bombay Stock Exchange (BSE) closed at Rs 259.40, up 20% on Monday.
Aegis Logistics provides supply chain management services to the Indian petroleum and chemical industry by storing, moving and distributing petroleum and chemical products to the end user. Apart from importing, marketing and distributing bulk LPG and propane, Aegis also retails auto LPG under the Aegis Autogas brand through its stations spread over eight states in India.