French fuel storage company, Rubis Energie, has successfully concluded its takeover of KenolKobil in a Ksh36 billion transaction, making it the largest foreign direct investment deal in recent years.
In the just-concluded transaction, Rubis received acceptances for shares that brings its stake in KenolKobil to 97.6 percent, marking the offer as the most successful public offer for a listed company in Kenyan history.
Payments to shareholders who accepted the Rubis offer are being processed.
Rubis has now started the process to purchase the remaining shares in KenolKobil representing 2.4% of the issued shares of KenolKobil by way of compulsory acquisition as provided for in the Companies Act.
Thereafter, the application shall be made to the Capital Markets Authority to delist KenolKobil from the NSE.
KenolKobil has now appointed two new directors to its board – Mr Christian Cochet and Mr Gilles Kauffeisen – both veteran experts in downstream oil and gas sector.
The Chief Executive Officer of Rubis Energie, Christian Cochet, said that the deal, its maiden investment in East Africa is a vote of confidence in the Kenyan economy, which is a gateway into the East and Central Africa region, and the conclusion of the deal coincides with the state visit of President Macron of France to Kenya.
Rubis is keen to play a major role in improving trading and investment relationships between Kenya and France
“This investment demonstrates our long-term commitment to the downstream fuel industry in Kenya and the East African region. It illustrates our faith in the potential of the company and the East and Central African economies. We expect to grow KenolKobil’s business and continue to improve the offering to KenolKobil customers and employees. We are very excited about the prospects for the business.” Mr Cochet added.
With the successful takeover of KenolKobil, Kenya becomes the 36th market in Africa, Europe and the Caribbean, where Rubis has operations. Rubis is listed on the Euronext Paris Stock Exchange.
As a subsidiary of Rubis, KenolKobil will adopt Rubis Group’s financial and operational policies, as well as global quality and service provision standards. It will also enjoy access to the group’s global experience and expertise in infrastructure, transport and supply service.
The Group Managing Director of KenolKobil, David Ohana, said: “This development is great for the company, employees, the entire value chain and stakeholders. It will significantly boost the firm’s capacity in areas such as storage, new stations, equipment, retail offerings, IT, operations and human capital’’.
“Our intention is to provide robust competition within Kenya’s downstream fuel industry, improve profitability for the benefit of the entire value chain and the economy. While the downstream fuel industry is robust, further innovation, scale, systems and strong distribution networks will greatly benefit the region,” Mr Ohana added.