Nearly two months after KenolKobil, acquired 33 service stations from Delta Petroleum Uganda Limited and Delta Petroleum Rwanda Limited, the Petroleum Company has finally released details on the transaction.
The financial transaction was revealed by KenolKobil’s independent financial advisor, Standard Investment Bank (SIB) in a shareholder report on Tuesday with the firm in the process of finalizing a takeover by French firm Rubis Energie.
“The two deals had a combined value of $12.1 million (Sh1.2 billion). These acquisitions are expected to contribute to the group top and bottom lines and are in line with the board’s growth strategy through organic and inorganic retail network expansion,” the report said.
In a public statement made during the announcement of the deal in November, 2018, the firm’s Board of Directors attributed the acquisition to the company’s network expansion strategy.
“The acquisition also reaffirms the Board’s commitment to grow the contribution of other businesses outside Kenya to the group’s bottom line,” the statement from the Board of Directors read.
Following the acquisition of the 33 service stations, KenolKobil will increase its overall reach in the East African market barely three years after it exited from Tanzania and the Democratic Republic of Congo.
Taking into account Rubis Energie’ looming procurement of the Petroleum Company which is expected to be concluded by March 2019; it is expected that the firm will aggressively expand its networks within Kenya and other African nations such as Uganda, Zambia and Rwanda where the company already has a presence.