India’s largest private sector company, Reliance Industries, on Tuesday said its wholly-owned subsidiary, Reliance Exploration & Production DMCC (REPDMCC), and lubricants major Total, have agreed for the sale of entire 76% interest in the Mauritius-incorporated Gulf Africa Petroleum Corporation (GAPCO).The company did not disclose the financial details.
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 finalised on completion of the transaction, which is expected to be within the coming months,” Reliance Industries said in a statement.
The proposed 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 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 leading petroleum marketing companies in East Africa, which now operates 108 retail outlets and owns 260 thousand kiloliter (TKL) of storage capacity.