Glencore has completed the sale of a 51% stake in HG Storage International Limited (HGSI) to HNA Innovation Finance Group (HNA), a transaction which was announced on 31 March 2017.
HGSI is a new vehicle which has consolidated Glencore's petroleum products storage and logistics businesses into a global portfolio of high-calibre assets, located in strategic trading hubs across Europe, Africa, the Middle East and the Americas.
Glencore and HNA have also entered into a second agreement pursuant to which three of the original transaction assets located in the USA will be transferred into HGSI in 2018, subject only to receipt of satisfactory CFIUS clearance. Of the original purchase price of $775m, $579m is attributable to today’s closing (subject to customary closing adjustments), with the balance payable upon closing of the second agreement.
HGSI intends to expand its global footprint through acquisitions and organic growth supported by its shareholders. A combined board and management team with extensive operational and trading experience is in place to execute HGSI's growth plans and utilise the strengths of Glencore and HNA groups globally.