Aegis Logistics Limited has informed the Exchange about framework Agreement executed between the Company and Aegis Vopak Terminals Limited.
AEGISLOG · price
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Aegis Logistics has signed a Framework Agreement with its associate company Aegis Vopak Terminals Limited (AVTL) to construct and develop a large Greenfield Terminal (called the J2 Project) at Jawaharlal Nehru Port. The project will include 77,286 MT of LPG storage, 318,100 cubic metres of liquid products storage, and a 35,000 MT per annum LPG bottling plant. Upon completion, AVTL will acquire the terminal from Aegis Logistics via separate Asset Transfer Agreements. Aegis Logistics will receive INR 502.50 crore from AVTL on execution of the agreement itself. The transaction is a related-party deal (AVTL is an associate) executed at arm's length.
The company gets a near-term cash inflow of ₹502.50 crore while its associate AVTL absorbs the long-term terminal asset, effectively shifting a major greenfield LPG and liquid storage project out of the listed entity. Shareholders should watch for the Asset Transfer Agreement terms and AVTL's funding arrangement, as this restructures where future terminal economics will accrue.