Glencore completes sale of majority stake in oil storage assets

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JOHANNESBURG, December 29 – Diversified miner Glencore Plc announced on Friday that it has completed the sale of a 51 percent interest in HG Storage International Limited (HGSI) to HNA Innovation Finance Group, subject to certain regulatory approvals and closing conditions by U.S. authorities.
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.
HGSI intends to expand its global footprint through acquisitions and organic growth supported by its shareholders.
In March, Glencore agreed to sell the stake in HGSI to HNA Innovation Finance Group Co for $775 million. Of the original purchase price of $775 million, $579 million is attributable to Friday’s closing, with the balance payable upon closing of the second agreement.
Chinese-owned HNA Group has developed from a local aviation transportation operator to a
global conglomerate, encompassing core divisions of aviation, hospitality, tourism, real estate, retail,
finance, logistics, technology, and shipbuilding.
Glencore and HNA also entered into a second agreement pursuant to which three of the original transaction assets located in the U.S. will be transferred into HGSI in 2018, subject only to receipt of satisfactory clearance from the Committee on Foreign Investment in the United States.
African News Agency (ANA)