Total Group Completes Chevron Acquisition in Uganda & Kenya

People familiar with the deal say the plot is to have Total Outre Mer acquire Chevron’s assets in Kenya and Uganda and ultimately sell the Kenyan segment – which is valued at Sh12 billion to Total Kenya – a listed company at the Nairobi Stock Exchange.

Total Kenya is yet to announce a financing plan for the acquisition of Chevron, which trades in Kenya under the Caltex brand.  Total Outre Mer outpaced its rivals for Chevron’s Kenya and Uganda assets with a Sh16 billion bid and the Kenyan operation is estimated to be worth Sh12 billion.

Total Kenya managing director, Felix Majekudumni, told Business Daily that the company’s board would be seeking regulatory approvals before making public its financing strategy for the acquisition.
“The board has made some decisions but I cannot disclose the details until they are filed with the Capital Markets Authority and the Nairobi Stock Exchange,” he said.

In November, Mr Majekudumni had said Total Kenya would negotiate with Total Outre’ Mer on how to “integrate” Chevron Kenya’s business with its existing operations.

This raised speculation that Total Kenya was likely to enter into a management contract with Total Outre’ Mer to run Caltex Kenya’s business on its behalf, which would have translated into lesser benefits trickling down to the Kenyan minority shareholders from the deal- with greater value being passed on to the French parent multinational.

Total Kenya’s shares soared 41.6 per cent to a six-month high of Sh34 in November following an investors’ rush for the stock after the acquisition deal was made public.

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3rd Nov 2008  Total Oil Agrees to Buy Chevron Marketing in Uganda & Kenya