Aegis Logistics in talks to acquire UAE’s Tristar for $1.5 billion

Mumbai: Aegis Logistics, a leading Indian importer, storage and distribution company for oil and gas, is in advanced discussions to acquire UAE-based Tristar, the largest privately owned liquid logistics company in West Asia, valuing the target at $1.5 billion, people aware of the development told ET.

It could be one of the largest consolidation efforts in the industry that has seen unprecedented volatility due to the ongoing Iran-US conflict.

The Mumbai-based company, with a market capitalisation of Rs 45,156.15 crore ($4.75 billion) has initiated discussions with a group of European and Indian private sector lenders for acquisition financing.


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Tristar operates across 30+ countries across West Asia, Africa, Asia, the Pacific, the Americas and Europe, provides transportation and storage services to customers including Abu Dhabi National Oil Company (ADNOC), Total SA, Dow Inc.

Such a diverse presence, feels industry participants, would complement Aegis which has already embarked on a massive capex cycle to expand its footprint aggressively.

In 2024, Bloomberg had reported Tristar Transport — which started out in 1998, as a road transportation business by Eugene Mayne, an hydrocarbons industry veteran before transforming into a fully integrated energy logistics business serving downstream oil and gas industry — mandated deNovo Partners to run a formal sale process.

The company was trying to capitalise on its revenue surge then and had abandoned earlier plans to take itself public on Dubai’s stock exchange at $880 million valuation in 2021, even after setting a price range and listing timelines. Mayne had told Bloomberg in an interview then that the offer was withdrawn following a mismatch in valuation expectations and investor education.

Diverse footprint, shareholders

Kuwait-based Agility Public Warehousing Company owns 65.21% of the company, while Gulf Investment Corp has a 19.6% stake. Mayne, the founder and CEO of Tristar, owns the rest of the firm.

According to Agility's annual report for 2025, Tristar is the second-largest controlled business, contributing 28% of total revenue and 5% of headcount. Its revenue increased 14.4% to $1.4 billion, while controlled ebitda remained broadly stable at $257 million, reflecting resilient operational performance despite margin pressure in the maritime segment.

According to one of the sources mentioned above, Aegis and Tristar are currently holding bilateral negotiations under a pre-agreed exclusivity period. However, this could not be independently verified. Sources also added that the talks could still fall apart despite the ongoing negotiations.

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The 60-year-old Aegis Logistics started by the Chandaria family, the most prominent billionaire business dynasty from East Africa, specialises in LPG import, storage, distribution, and bulk liquid storage and terminalling services for petroleum, petrochemicals, and chemical products.

Its infrastructure includes LPG and liquid storage terminals at major ports such as Mumbai, Haldia, Pipavav, Kochi, Kandla, Mangalore, and JNPT, most of which are undergoing ramp ups. The company, part of the larger Chandaria Family, the most prominent billionaire business dynasty from East Africa, also manufactures and distributes oleochemicals and kerosene oil and provides chemical storage facilities. The company operates through two primary business segments: the Gas Division and the Liquid Division.

The Gas Division manages the import, storage, and distribution of LPG and propane for oil marketing companies and other industrial customers, while the Liquid Division provides storage and handling services for petroleum products, chemicals, and edible oils. In FY25, the Gas Division accounted for approximately 90% of total revenue, while the liquid division contributed ~10%, though the latter remains the key driver of profitability due to its significantly higher margins.

The Chandaria clan, led by second generation Raj K Kandaria owns 58.10 per cent of Aegis held via the family investment vehicles Huron Holdings Ltd and Trans Asia Petroleum Inc.

Efforts to reach Raj Chandaria, Chairman and Managing Director of Aegis on his cell phone did not generate a response. Mails to Tristar spokesperson also remained unanswered till press time Monday.

Growth opportunities

On the earnings call this June for Q1FY27 financial results, management described FY26 as a "breakout year" and said the company was "very bullish" on the growth opportunity. It also said the higher LPG distribution margin of around ₹7,000 per tonne was expected to remain sustainable, with procurement efficiencies from higher volumes expected to offset any moderation in energy prices.

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Aegis has been planning a large capital-spending cycle. In the earnings call, the management indicated $1.2 billion of cumulative capex through March 2027, another ₹5,000 crore by March 2028, and a broader investment opportunity of around $5 billion through December 2030. Heavier spending was anticipated towards FY29-FY31. This, said CFO Murad Moledina, would be supported by the company's "war chest." through a "balanced mix of equity, internal accruals, and debt."

He also mentioned Aegis wanted to maintain a "fortress balance sheet" and a "very healthy cash balance". He said the company was not in a rush to deploy its cash and would do so when it found profitable organic or inorganic opportunities.

“The Aegis stock – up 79.49% year to date -- has run up significantly in recent months, primarily driven by the strength in the LPG distribution segment margin,” said Abhisekh Nigam, analyst with Motilal Oswal. “While we remain constructive on capacity addition and utilization increase-led growth, valuations are not inexpensive.”

It closed at Rs 1286.50/share on BSE on Monday.

Sources said the company is looking to refinance or roll over or the existing $600 million of debt at the target as well as raise another $400-$500 million debt to finance the takeover. The rest will be equity financed.

Earlier this June, Tristar completed a $800 million syndicated financing from a group of regional and international lenders of the Middle East.

“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.