French based fuel Distribution Company Rubis SCA on Wednesday proposed to buy the remaining shares of Kenyan oil marketer KenolKobil where it currently owns a quarter of the total stocks.
According to Reuters, Rubis has offered to purchase the remaining shares at Ksh. 23 each which is 53.4 per cent above their weighted average closing price in the Nairobi Securities Exchange over the last 30 days.
“That values all of KenolKobil at about 35 billion shillings ($347 million),” Reuters reported.
The French Firm also announced that it had struck agreements with a pair of KenolKobil shareholders to purchase shares amounting to 9.69 per cent of the company as it awaits the company’s decision on the initial proposal.
Rubis, according to Reuters, is aiming to acquire the entirety of KenolKobil shares but if it acquires less than 90 per cent of the shares it will ‘take steps to delist the shares from the Nairobi Securities Exchange’.
According to Paras Shah, the Legal Adviser to Rubis, the deal is likely to be completed in the first quarter of 2019.
Apart from Kenya, the oil marketer-KenolKobil- has subsidiaries in Ethiopia, Uganda, Rwanda, Burundi and Zambia. In the last financial year, the company recorded a significant rise in profit which was attributed to a relaxed political environment following Kenya’s August 2017 elections.
The profits are estimated to further improve by the end of the year. If the deal is successful, Rubis SCA; which is valued at $4.7 billion dollars, will lay claim to the Kenyan market which it is yet to penetrate since its establishment in 1990.