Reliance to sell its entire share in GAPCO to Total
The Dollar Business Bureau
Reliance Industries Ltd’s (RIL) indirectly fully-owned arm, Reliance Exploration & Production DMCC (REPDMCC), has signed an agreement to sell its entire interest of 76 percent in the Mauritius-incorporated GAPCO to Total Marketing and Services.
REPDMCC has signed agreement with Total on May 30, 2016 for the sale of its entire 76 percent interest held by it in the GAPCO (Gulf Africa Petroleum Corporation), RIL said in a BSE filing on Tuesday.
The proposed deal is subjected to approvals from regulatory bodies and other conditions that are applicable for such transactions, it added.
GAPCO, a holding company, has operating arms in Kenya, Tanzania and Uganda, which are majorly involved in the imports of petroleum products. The company is also engaged in trading, distribution, supplying, marketing, transportation and storage of oil products in the East African region.
In 2007, REPDMCC had acquired 76 percent equity interest in GAPCO. Since then, GAPCO has considerably grown and is one of the top petroleum marketing companies in East African region. Currently, it operates 108 retail stores and has 260 TKL of storage capacity.
The agreement of REPDMCC to sell its entire interest in GAPCO is part of a joint deal, in which REPDMCC as well as the minority shareholders have decided to sell their respective shareholdings in GAPCO for cash, the company said.
The net sale proceeds will be finalised on the conclusion of the deal, which is expected to be completed in the coming months.
RIL, the largest private sector company in India, has recorded a net profit of $4.2 billion (Rs.27,630 crore) during the fiscal ended March 31, 2016.
Total is the fourth largest distributor of lubricants globally and is the leading distributor of petroleum products in Africa. The company operates 50 manufacturing sites across the world where it manufactures additives, lubricants, bitumen, fluids and special fuels.