KenolKobil has announced the acquisition of 33 service stations (23 in Uganda and 10 in Rwanda) from Delta Petroleum. Management expect to conclude the transaction by end of March 2019.
The general analysts’ view is that the transaction will increase the total retail network of the KenolKobil Group to 433 stations (8.25% increase), of which 200 stations are in Kenya. Kobil Uganda’s retail outlets will increase to 56 stations (69.7% increase) while Kobil Rwanda will have 61 stations (19.6% increase) under its control.
The general split of volumes has been 60:40 in favor of Kenya operations (incl. exports) relative to non-Kenya operations, as at 2017.
Depending on the quality of the stations acquired, revenue at Group level will gradually increase on account of volumes sold. Margins from the retail segment will slightly cushion KenolKobil’s activity on OTS. Details of the transaction have however not been provided. Shareholder expectations are that the management will not be averse to taking on leverage to complete this transaction.
It’s expected that the Rubis takeover transaction will be completed in March 2019 subject to regulatory requirements being met.
Additionally, KenolKobil released an offer statement by Rubis Énergie for shares in KenolKobil.