Reliance Industries Ltd has entered into a pact with Total Marketing & Services, a subsidiary of French oil and gas firm Total SA, to divest its entire 76% equity stake in the Mauritius-based oil retailer Gulf Africa Petroleum Corp (GAPCO), as per a stock market disclosure.
As per the pact, Reliance Industries' wholly-owned subsidiary Reliance Exploration and Production DMCC (REPDMCC) agreed to divest its stake in GAPCO for cash.
The size of the deal, however, was not disclosed. It said in the filing that net proceeds for the same will be finalised on the completion of the transaction, which is expected to be closed in a few months.
The assets being acquired include two logistical terminals in Mombasa, Kenya and Dar es Salaam, Tanzania, as well as a retail network of around one hundred service stations, Total said.
REPDMCC had acquired 76% stake in GAPCO in 2007. GAPCO now operates 108 retail outlets and owns 260,000 kilo litres of storage capacity.
“This acquisition is in line with Total's growth strategy for distribution of petroleum products and services in Africa, which aims at expanding in fast-growing regions while maintaining high profitability," said Momar Nguer, president, Total Marketing & Services in a separate statement.
"These assets, which complement our activities in East Africa, will help us fully leverage synergies of size and build an integrated regional supply, logistics and marketing base,†Nguer said.
The transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions.
GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda which are engaged in petroleum product imports as well as trading, storage, distribution, marketing, supply and transportation of oil products in East Africa.
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