 KenolKobil
Limited has signed a Sales and Purchase Agreement to buy the entire
shareholding of Oil Burundi S.A., which is owned by Engen International
Holdings (Mauritius) Limited.
Through the signing of the purchase agreement, KenolKobil Limited
has effectively established its sixth subsidiary outside Kenya, Kobil
Burundi S.A., with the others being Kobil Uganda, Kobil Tanzania, Kobil
Rwanda, Kobil Zambia and Kobil Ethiopia.
The newly-acquired fuel wholesaler is the leading distributor of
Lubricants in Burundi, supplying to several key commercial customers,
and therefore provides an ideal platform for the company to grow the
market share of its Kobil Lubricants brand.
The outfit has also been engaged in the supply of white products to independent service stations in Burundi.
The shares of oil Burundi S.A will be purchases from Engen
International Holdings (Mauritius) Limited. KenolKobil Limited
have also acquired three service stations branded SONITRA in
Burundi from an independent oil marketer.
Prior
to these acquisitions, KenolKobil has been exporting white products and
lubricants to the market, and the new subsidiary opens up further
supply opportunities through Tanzania. The Tanzanian supply corridor
has in recent times been the most reliable and effective route that oil
marketing companies have been relying on for supplies to Uganda,
Rwanda, Eastern Democratic Republic of Congo due to the Refinery and
Pipeline and Storage unreliable distribution performance in Kenya, and
is set to develop even further.
Owing to the KPC problems, limited capacity in the KOSF,
non-availability of products in Western Kenya and poor performance
of Kenya Petroleume Refinery , Burundi like others , has
shifted most of its imports to Dar. In establishing this subsidiary,
KenolKobil intends to enhance its use of the Tanzanian facilities to
supply Burundi.
In the this acquisition, KenolKobil completes KenolKobil’s presence in
the East African Community (EAC) trading block. Through the new
acquisition, Kobil Burundi has acquired the rights to import, store and
distribute products in the only depot in Bujumbura, SOCIETE
D’ENTREPOSAGE PETROLIER AU BURUNDI (SEP Burundi) Depot.
.
Kobil Burundi will further enhance the KenolKobil Group’s to the South
Eastern Democratic Republic of Congo, through the towns of Kigoma and
Uvira. As was the case in Rwanda which was established from scratch to
a market leader with over 35% market share, the Group has a lot of
confidence in its new investment in Burundi, and is on the look-out for
more growth opportunities in that country, both through organic growth
and through acquisitions and buy-offs when strategic opportunities
arise.
PetrolWorld 280809
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