Mukesh Ambani-led Reliance Industries (RIL) has agreed to sell its entire stake in Mauritius-based Gulf Africa Petroleum Corporation (GAPCO) to French energy giant, Total S.A. for an undisclosed sum in a bid to focus on domestic market, according to the company.
Reliance Exploration & Production DMCC (REPDMCC), an indirect wholly-owned subsidiary of RIL and Total, executed agreements on May 30 for the sale of the entire 76 per cent interest held by REPDMCC in GAPCO, according to a company statement. The transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions.
Joint transaction “REPDMCC’s agreement to sell its interest in GAPCO is part of a joint transaction wherein both REPDMCC and the minority shareholder (Fortune Oil Corporation) have agreed to sell their entire respective holdings in GAPCO for cash,” according to the company statement.
The net proceeds for the sale will be finalised on completion of the transaction which is expected in the coming months.
“These assets, which complement our activities in East Africa, will help us fully leverage synergies of size and build the most competitive integrated regional supply, logistics and marketing base,” said Momar Nguer, President-Marketing & Services, Total S.A.
The acquisition is in line with Total’s growth strategy aimed at expanding in fast-growing regions while maintaining high profitability for distribution of petroleum products and services in Africa.
In 2007, RIL acquired 76 per cent stake in the loss-making GAPCO which had units in Tanzania, Kenya and Uganda.
