RIL announced the acquisition of a majority stake and management control of Gulf Africa Petroleum Corporation (GAPCO) for an undisclosed amount.
Picks up majority stake in Gulf Africa Petroleum Corp
NEW DELHI: Reliance Industries Ltd (RIL) on Tuesday announced the acquisition of a majority stake and management control of Gulf Africa Petroleum Corporation (GAPCO) for an undisclosed amount.
The Mauritius-based GAPCO, with significant operations in East Africa, was owned by brothers Yogesh Kotak (44%), Dhiran Kotak (44%) and Africa Growth Fund (12%).
The buy has been made through RIL's wholly owned subsidiary Reliance Industries Middle East, Dmcee (RIME), a company registered in the United Arab Emirates. GAPCO owns and operates large storage terminalling facilities and about 250 retail outlets in countries including Tanzania, Uganda and Kenya.
Refusing to divulge the exact holding of RIL in GAPCO, a RIL executive said the Kotaks may continue to hold a small stake in the company.
An RIL statement said the GAPCO acquisition is strategic in nature especially since East African countries, where GAPCO operates, have demonstrated rapid economic growth and have progressive government policies in place.
"The demand for petroleum products in these countries is rising steadily and has mirrored the rapid GDP growth. Import of petroleum products in these countries is also expected to rise in the near future," said the statement.
RIL plans to export products from its two refineries in Jamnagar to feed the network it has acquired through GAPCO.
"These markets are easily accessible from India and in that sense provide a strategic fit for exports from India," the company said.
RIL already exports its products to over 100 countries covering Europe, Americas, the Far East and Africa.
According to the company, the acquisition would help RIL establish a natural marketing sink for its refinery products and capture value up to the last mile in the global petroleum value chain.
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