Total Marketing Kenya Company Reflects Expanding Total Brand

The official process to set up the new subsidiary Total Marketing Kenya Company which will operate both the existing Total Oil business and the newly acquired  Caltex fuel business in Kenya and Uganda will be complete next month.

In acquiring Chevron Kenya and Uganda entities, Total Outré Mer S.A, established a new subsidiary Total Marketing Kenya for the deal.  A board of directors meeting in April approved the acquisition of the subsidiary from the parent company.  “TKL has now received all relevant approvals for the transaction, including the approval of the Capital Markets Authority for the issue of the shareholders circular,” said chairman Herve Allibert in the statement.  The listed firms shareholders are expected to pull through the deal during an extraordinary general meeting scheduled for October 19. Once this goes through then the entire process is expected to be complete by the end of October.

Total Kenya Limited is to pay Sh3.9 billion to its parent company for the acquisition of its subsidiary used for the purchase of Caltex Kenya and Uganda.  The transaction is to be financed through the creation of 1223.5 million redeemable preference shares (RPS) to Total Outré Mer S.A.  In a statement to the Nairobi Stock Exchange, the firm noted that the shares would be priced at Sh31.58 apiece.  “The RPS will be non-voting shares. Subject to this, and save for the terms of redemption and priority on liquidation, the RPS shall have equal voting rights as those of ordinary shares of Total Kenya Limited,” explained the statement.

A rebranding process of the former Caltex service station network is  currently taking place.   The rebranding process will reflect the Total international brand across its global operations.

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