Oil marketer Kenol Kobil has acquired 33 service stations from each of Delta Petroleum Uganda and Rwanda by an asset sale.
Delta Uganda is an oil marketing company in Uganda and has agreed to sell 23 retail outlets spread across Uganda. Delta Rwanda is also in the oil marketing business and has a network comprising of 10 retail outlets spread across Rwanda, which are the subject of the sale.
According to a statement from KenolKobil, the acquisition of the 33 stations in Uganda and Rwanda is expected to contribute to the group top and bottom lines.
The acquisitions are in line with the Board’s growth strategy through organic and inorganic retail network expansion.
The acquisition also reaffirms the Board’s commitment to growing the contribution of other businesses outside Kenya to the group’s bottom line.
Subject to successful conclusion of the transaction, the total retail network of the KenolKobil group will rise to 433 stations, of which 200 stations are in Kenya. Kobil Uganda’s retail outlets will increase to 56 stations while Kobil Rwanda will have 61 stations under its control.
The transaction is subject to applicable legal and regulatory approvals. The company’s board has been working on the transaction since February 2018 and is expected to conclude by end of March 2019.
BY SAMUEL NABWIISO