June 1, 2016 [OPIS] - Reliance Exploration & Production DMCC (REPDMCC), an indirect wholly owned subsidiary of Reliance Industries Limited (RIL) said that it will sell the entire 76% interest held by REPDMCC in the Mauritius-incorporated Gulf Africa Petroleum Corp. (GAPCO) to Total.
GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda that are primarily engaged in petroleum product import, and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa.
Since the acquisition of 76% equity interest in GAPCO by REPDMCC in 2007, GAPCO has significantly grown and is one of the leading petroleum marketing companies in East Africa, which now operates 108 retail outlets and owns 260,000 kiloliters of storage capacity.
Total said the acquisition of the assets, which are complementary to its existing operations in Kenya, Uganda and Tanzania, will strengthen its logistics in the region and significantly accelerate the growth of its service station network, particularly in Tanzania, while leveraging the Total brand.
Total said it is the leading petroleum product retailer in Africa, with a network of more than 4,000 service stations. The company aims to grow its market share from 17% in 2015 to more than 20%.
The proposed transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions.
REPDMCC’s agreement to sell its interest in GAPCO is part of a joint transaction, wherein both REPDMCC and the minority shareholder have agreed to sell their entire respective holdings in GAPCO for cash.
The net proceeds for the sale will be finalized on completion of the transaction, which is expected in the coming months.
