KenolKobil has announced acquisition of up to 33 service stations operated by Delta Petroleum in Uganda and Rwanda.
The service stations will be acquired its wholly owned subsidiaries Kobil Uganda Ltd and Kobil Petroleum Rwanda Ltd by way of an asset sale, the oil company said in a public notice.
“Delta Uganda is a leading oil marketing company in Uganda and it has agreed to sell 23 retail outlets spread across Uganda. Delta Rwanda is also in the oil marketing business and has a network comprising of 10 outlets spread across Rwanda, which are the subject of the sale,” the public announcement added.
KenolKobil said the acquisition of the 33 stations in Uganda and Rwanda is expected to contribute to its top and bottom lines, noting they are in line with the Board’s great strategy through organic and inorganic retail network expansion.
“The acquisition also reaffirms the Board’s commitment to grow the contribution of other businesses outside Kenya to the group’s bottom line. Subject to the successful conclusion of the transaction, the total retail network of KenolKobil will rise to 433 stations, of which 200 stations are in Kenya. Kobil Uganda’s retail outlets will increase to 56 stations. Kobil Rwanda will have 61 stations under its control,” the statement said.
The transaction is subject to applicable legal and regulatory approvals. The KenolKobil Board revealed it has been working on the transaction since February 2018 and is expected to conclude by end of March 2019.
The Nairobi Securities Exchange (NSE)-listed company advised investors and the general public to exercise caution when dealing in the securities of the company.
KenolKobil was recently in the limelight after the Capital Markets Authority (CMA) launched a probe into unusual sale of its shared ahead of a takeover plan by French firm Rubis Énergie amid suspicion of insider trading. KenolKobil, which has operations across the region, is majority owned by the family of former Cabinet minister, the late Nicholas Biwott. It had valued the company at about Ksh 35 billion.