Mumbai, May 31 (IANS) Reliance Industries on Tuesday said it has executed a pact with Total to sell its entire 76-percent stake in the Mauritius-incorporated Gulf Africa Petroleum Corp, held by the company's wholly-owned subsidiary.
The size of the deal was not disclosed in the regulatory filing.
"Reliance Exploration and Production's (Repdmcc) agreement to sell its interest in Gulf Africa Petroleum Corp (Gapco) is part of a joint transaction, wherein both Repdmcc and the minority shareholder have agreed to sell their entire respective holdings in Gapco for cash," it said.
"The net proceeds for the sale will be finalized on the completion of the transaction, which is expected to be within the coming months."
Gapco is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda which are primarily engaged in petroleum product imports, as also trading, storage, distribution, marketing, supply and transportation of oil products in East Africa.
"Since the acquisition of 76 percent equity in Gapco by Repdmcc in 2007, Gapco has significantly grown and is one of leading petroleum marketing company in East Africa, which now operates 108 retail outlets and owns 260,000 kilo litres of storage capacity," the company said.
This acquisition is in line with Total's growth strategy for distribution of petroleum products and services in Africa, which aims at expanding in fast-growing regions while maintaining high profitability, said Total's president Momar Nguer in a separate statement.
These assets, which complement our activities in East Africa, will help us fully leverage synergies of size and build the most competitive integrated regional supply, logistics and marketing base.
The assets being acquired include two logistical terminals in Mombasa, Kenya and Dar es Salaam, Tanzania, as well as a retail network of around one hundred service stations, Total said.
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