NAIROBI May 8 Kenyan oil marketer KenolKobil
expects the sale of a majority stake to Puma Energy by
key shareholders to be completed in the next few months, its
chairman and chief executive said on Tuesday.
KenolKobil entered an exclusive agreement with Swiss-based
Puma Energy, a subsidiary of Trafigura, for the sale
of a majority stake, subject to due diligence, regulatory
approval and price confirmation.
"I do not think it should take more than a few months from
now in order to see it (the deal) through," Jacob Segman told a
KenolKobil, which said it had net sales of $2.5 billion last
year and earnings of $59 million, has a downstream business
spanning 10 African nations.
The oil industry in east Africa has attracted foreign
investment in recent years after discoveries in Tanzania, Uganda
It said that Puma Energy's acquisition of the business would
help it strengthen its trading activities, through its three
trading desks in Nairobi, Dar es Salaam and Harare.
"We see them bringing on board a lot of assistance in
supply, in trading in capital for further expansion and
development. It fits very much the management strategy," Segman
Puma Energy, whose investments on the African continent
include a strategic partnership with Angola's Sonangol, said the
deal will help it expand its presence in Africa.
Puma Energy handles fuel supply and storage, as well as fuel
distribution and retail sales. Puma Energy operates in 30
countries globally, including 12 in West, Central and Southern
Trafigura and Puma Energy have been purchasing assets from
oil majors since last year, parallel to its peer Vitol.
Last year Puma bought assets in Africa, central and south
America from oil majors such as Exxon Mobil, Chevron
"For us, it is a big step to increase our presence on the
continent," Pierre Eladari, chief executive of Puma Energy
International, told the news conference.
The firm plans to eventually take over KenolKobil after the
initial purchase of the majority stake, subject to regulatory
KenolKobil shares were suspended from trading on Tuesday and
will resume trade on Wednesday. They closed trade at 12.50
shillings on Monday.
(Reporting by George Obulutsa; Writing by Duncan Miriri;
Editing by Jon Loades-Carter)