Ltd. is in talks with banks including BNP Paribas SA, HSBC Holdings Plc and JPMorgan Chase & Co. about raising funds for its acquisition of Dubai-based Tristar Holdings Ltd., people familiar with the matter said.
The Indian logistics company is considering raising at least $300 million of foreign-currency debt, as well as around $250 million to $300 million through an equity offering known as a qualified institutional placement, according to the people, who asked not to be identified because the discussions are private.
Discussions with lenders are ongoing
The QIP may be launched in the coming months, the people said, adding that Aegis might also use some cash on its balance sheet for the purchase. The acquisition is expected to be completed by the end of March next year.
Discussions with the lenders are ongoing and the size and structure of the potential fundraising hasn’t been finalized, they said.
Representatives for Aegis and the banks didn’t respond to requests seeking comment.
Aegis to acquire about 90% of Tristar
Aegis said on Oct. 13 it had agreed to acquire about 90% of Tristar through its Singapore-based subsidiary Aegis Logistics International Pte for $809 million. Tristar provides logistics in areas including fuel distribution and tank storage, aviation fueling, road transport and maritime logistics.
Aegis shares climbed 7% in Mumbai on Wednesday following the announcement, but retreated later in the week. The stock is still up 87% this year, giving the company a market capitalization of about $5 billion.