Aegis Eyes $1.5 Billion Tristar Deal As Iran War Reshapes Energy Logistics

Aegis Logistics, a prominent Indian oil and gas importer, storage and distribution firm, is in advanced talks to acquire UAE-based Tristar, West Asia's biggest privately held liquid logistics enterprise, Economic Times reported.

The proposed deal values the target at $1.5bn. The potential transaction represents a major consolidation within an industry facing intense volatility driven by the ongoing Iran-US conflict, The Economic Times reported.

With a market capitalisation of Rs 45,156.15 crore ($4.75bn), Mumbai-headquartered Aegis has begun talks with European and Indian private sector lenders to finance the buyout.

The two companies are currently holding bilateral negotiations under a pre-agreed exclusivity period, one source said, though this could not be independently verified.

People aware of the development told The Economic Times that the talks could still fall apart before a definitive agreement materialises.

Efforts to reach Aegis Chairman and Managing Director Raj Chandaria on his cell phone did not respond, while emails to a Tristar spokesperson were unanswered as of Monday press time.

Tristar Global Footprint

Tristar operates across more than 30 countries, spanning Europe, the Americas, the Pacific, Asia, Africa and West Asia.

The logistics firm provides transportation and storage to major clients including Abu Dhabi National Oil Company (ADNOC), Total SA and Dow Inc.

Industry participants feel such a diverse presence would complement Aegis, which has begun a massive capex cycle to expand its footprint aggressively.

The company ownership is split among three main shareholders. Kuwait-based Agility Public Warehousing Company holds 65.21% of the firm. Gulf Investment Corp owns a 19.6% stake, while founder and CEO Eugene Mayne controls the remainder.

Financial performance remains stable. Tristar is the second-biggest controlled entity, accounting for 28% of overall revenue and 5% of the workforce, Agility's 2025 annual report stated, as reported by The Economic Times.

Tristar revenue rose 14.4% to $1.4bn. Its controlled EBITDA held steady at $257mn, demonstrating robust operational results even with maritime segment margin pressures.

Tristar started in 1998 as a road transport operation before evolving into a comprehensive energy logistics provider for the downstream oil and gas sector. The firm previously tried to list on the Dubai stock exchange at an $880mn valuation in 2021.

The firm eventually abandoned the plan despite having established listing schedules and a price band.

Mayne said in an interview with Bloomberg, as reported by The Economic Times, that the initial public offering was withdrawn due to a "mismatch in valuation expectations and investor education".

Bloomberg reported in 2024, according to The Economic Times, that the company mandated deNovo Partners to run a formal sale, seeking to leverage its revenue growth at the time.

Aegis Aggressive Expansion

The 60-year-old Aegis is controlled by the prominent East African billionaire Chandaria family.

Family investment vehicles Huron Holdings Ltd and Trans Asia Petroleum Inc, managed by second-generation leader Chandaria, hold a 58.10% stake in the firm.

Aegis focuses on LPG distribution, storage and import, alongside bulk liquid terminalling and storage for chemical, petrochemical and petroleum goods. It also produces and supplies kerosene oil and oleochemicals while offering chemical storage solutions.

The company operates through two primary segments across major Indian ports. Its facilities feature liquid and LPG storage terminals at key locations including JNPT, Mangalore, Kandla, Kochi, Pipavav, Haldia and Mumbai, with most currently undergoing expansion.

Its Gas Division, which handles propane and LPG distribution, storage and import for industrial clients and oil marketing firms, generated approximately 90% of total revenue in the 2025 financial year.

The Liquid Division, delivering handling and storage solutions for edible oils, chemicals and petroleum goods, contributed the remaining 10%, but its substantially greater margins serve as the primary engine for total profitability.

During the June earnings call for Q1FY27 results, as reported by The Economic Times, management stated the 2026 financial year was a "breakout year" and expressed being "very bullish" regarding growth prospects.

They noted elevated LPG distribution margins near ₹7,000 per tonne were anticipated to stay sustainable, as volume-driven procurement efficiencies should counterbalance potential energy price moderations.

Aegis has outlined a massive capital expenditure programme. The company plans to spend $1.2bn cumulatively through March 2027 and an additional Rs 5,000 crore by March 2028.

It sees a broader investment opportunity of approximately $5bn through December 2030, with heavier spending projected between the 2029 and 2031 financial years.

CFO Murad Moledina said this capex would be supported by a "war chest" through a "balanced mix of equity, internal accruals and debt."

He added the company aims to maintain a "fortress balance sheet" and a "very healthy cash balance", noting Aegis was in no hurry to utilise its cash reserves, waiting instead for lucrative inorganic or organic prospects.

Aegis shares closed at Rs 1286.50 on the BSE on Monday.

Funding The Takeover

Aegis plans to structure the $1.5bn acquisition using a mix of debt and equity. The Mumbai firm intends to roll over or refinance the target's current $600mn debt load.

It also plans to secure an additional $400mn-$500mn in borrowing, people aware of the development told The Economic Times. The remainder will be equity-financed.

Tristar recently bolstered its own financial position. In June, the logistics firm completed an $800mn syndicated financing backed by a consortium of Middle Eastern regional and global lenders.

"The final expected debt structure aligns with our commitment to maintaining a diversified and sustainable capital structure while providing the flexibility needed to support future expansion," Mayne said in June.