EAST AFRICA: The Rubis Group takes positions

The Rubis Group is submitting a takeover bid for KenolKobil, the leading distributor of petroleum products in Kenya, but also established in Burundi, Ethiopia, Uganda, Rwanda and Zambia.

October 2018

Following the acquisition of 24.99% of the capital of KenolKobil Plc, the Rubis Group today announced its intention to launch a public tender offer on the remaining capital, in accordance with the regulations applicable to the Nairobi Stock Exchange, the Kenyan Capital Markets Act and all other applicable laws and regulations.

KenolKobil, the leader in the distribution of petroleum products in Kenya, is also established in Burundi, Ethiopia, Uganda, Rwanda and Zambia with a total volume in final distribution of 1.3 million m3 in 2017.

KenolKobil encompasses all oil product distribution activities: networks (350 service stations), aviation fuels, liquefied gas, lubricants, bitumen, with secure access to pipelines and its mesh of 10 terminals.

The petroleum products distribution sector in East Africa is benefiting from steady growth in demand, driven by demographic development, urbanisation and investments in road infrastructure. With a population pool of more than 200 million inhabitants, KenolKobil offers solid development prospects.

Since 2013, KenolKobil has recorded steady growth in its volumes and results with a normalised operating income of USD 50 million generated in 2017 and has a solid financial structure.

At KES 23 (Kenyan Shillings) per share, Rubis’ bid valued KenolKobil at USD 353 million (100%), financed by the Group’s own resources with an immediate accretive effect.

The final launch of the public tender offer is subject to the approval of the regional and national competition authorities and any other competent authority.

KenolKobil perfectly matches the Rubis Group’s investment objectives and criteria and will ideally complement Rubis Energie’s position in Africa, in a particularly promising sector where the Group intends to provide new impetus.

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