Aegis is in discussions with BNP Paribas SA, HSBC Holdings Plc and JPMorgan Chase & Co. to help fund its Tristar takeover, according to people familiar with the matter. Talks are ongoing, and both the amount and the structure of any package are still being worked out.
Company and bank representatives did not respond to requests for comment.
People close to the process say Aegis is weighing at least $300 million of foreign currency debt alongside a qualified institutional placement - a share sale to institutional investors - in the range of $250 million to $300 million. The equity raise could roll out in the coming months, and the company may also tap cash already on its balance sheet.
On Oct. 13, Aegis said its Singapore subsidiary, Aegis Logistics International Pte, agreed to buy about 90% of Tristar for $809 million. Tristar's operations include fuel distribution, storage in tanks, aircraft refueling, over-the-road transport, and maritime logistics. The deal is slated to wrap up before March ends next year.
Aegis shares rose 7% in Mumbai on Wednesday after the announcement, then eased later in the week. Even after that pullback, shares remain 87% higher for the year, and the company's market value sits around $5 billion.
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The mix of offshore borrowing and equity issuance would spread the load between interest costs and dilution, and the exact ratio could shift as lender talks progress. Timing also matters: with a QIP possible in the coming months and closing targeted by March-end next year, new information could hit the tape in phases. The bottom line: watch how the debt, new shares and cash blend evolves, because that will shape leverage, earnings and your Aegis exposure.
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