AVTL in India undertakes primary equity issue

AVTL has reached an agreement for a primary equity issue to investors for an amount of INR 8.0 billion equivalent to EUR 88 million.

The proceeds of the Issue are proposed to be utilised for repayment of all, or a portion, of the outstanding unsecured borrowings of AVTL and for the purpose of execution of various projects including growth projects and/or other corporate purposes relating to AVTL’s principal business activities. The transaction represents a shareholding of 3.4% in AVTL. As a result of this transaction, Vopak’s shareholding in AVTL will be diluted from 49% to 47.3%. The expected exceptional gain for Vopak on the transaction will be reported once all conditions are fulfilled.

The lead investor in this transaction is 360 ONE, one of India’s leading wealth and asset management firms.

AVTL continues to explore options to fund growth through potential fund raise by way of public issue, preferential issue or combination thereof of the equity shares and debt as may be decided by AVTL’s board in absolute discretion and permitted under applicable laws and regulations which shall be subject to receipt of requisite approvals, market conditions and other considerations.

AVTL, a joint venture of Vopak and Aegis, is the largest Indian third-party owner and operator of tank storage terminals for liquified petroleum gas and liquid products in terms of storage capacity, as of June 30, 2024 (Source: CRISIL Report). AVTL owns and operates a network of tank storage terminals having an aggregate storage capacity of approximately 1.50 million cubic meters for liquid products and 70,800 metric tons of static capacity for LPG as of June 30, 2024.