Reliance Industries says net proceeds for the sale will be finalised on completion of the transaction, which is expected in a few months
Mumbai: Reliance Industries Ltd (RIL) on Tuesday said that it has sold its entire 76% stake in African fuel retailer Gulf Africa Petroleum Corp. (Gapco) to Total SA of France for an undisclosed sum.
The stake in Gapco was held by RIL’s indirect wholly-owned unit Reliance Exploration and Production DMCC or REPDMCC.
Gapco, a holding company incorporated in Mauritius with operating subsidiaries in Kenya, Uganda and Tanzania, is engaged in petroleum product imports, trading, storage, distribution, marketing, supply and transport of oil products in East Africa.
Total, a petroleum product retailer in Africa, will acquire the assets in these countries.
The company, in its statement, said net proceeds for the sale will be finalised on completion of the transaction, which is expected in a few months.
“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,” RIL said in a press statement.
“Since the acquisition of 76% equity in Gapco by REPDMCC in 2007, Gapco has significantly grown and is one of leading petroleum marketing company in East Africa, which now operates 108 retail outlets and owns 260,000 kilo litres of storage capacity,” the company said.
The transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions, RIL added.
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