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Kenol pumps Sh1.2 billion into Uganda, Rwanda acquisitions




A worker adjusts fuel prices at a KenolKobil petrol station in Eldoret Town in the past. FILE PHOTO | NMG 

KenolKobil’s #ticker:KENO acquisition of 33 petrol stations in Uganda and Rwanda will cost it Sh1.2 billion, the oil marketer has disclosed in documents relating to its impending buyout by French firm Rubis Energie.

The Nairobi Securities Exchange-listed firm in November last year announced it had signed an agreement to acquire the assets from Delta Petroleum Uganda and Delta Petroleum Rwanda but did not disclose the investment value at the time.

KenolKobil’s independent financial advisor, Standard Investment Bank (SIB), has now revealed the size of the capital expenditure as part of disclosures to the oil marketer’s shareholders.

“The two deals had a combined value of $12.1 million (Sh1.2 billion),” SIB said in its report, noting that KenolKobil will make even larger investments to grow in the regional market under the ownership of Rubis.

KenolKobil currently owns 430 retail outlets. Purchase of the 33 service stations mark the company’s return to expansion nearly three years since it scaled down its regional footprint by exiting Tanzania and the Democratic Republic of Congo markets.

“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.

KenolKobil plans to add an extra 75 service stations to its network over the next five years. The company intends to aggressively expand in markets such as Uganda, Zambia and Kenya which are expected to significantly increase its volume sales and bottom-line.

“The net profit for the group is expected to grow by an average of 15 per cent over the next five years,” the report said.

KenolKobil earns nearly 10 per cent of its revenues from the regional subsidiaries.