Hass Petroleum sells 40pc stake to Oman Trading to finance expansion
Oil marketing firm Hass Petroleum group has sold a 40 percent stake in the firm to an Oman government oil company in a move aimed at expanding is presence in the region.
Though the value of the deal is yet to be made public, Hass Petroleum plans to open 30 new fuel stations by next year, taking its footprint to 90 across east and central Africa.
Oman Trading International (OTI) will invest the additional funding from the transaction to enhance its market visibility through new distribution assets specifically Service Stations across its key markets in the region.
As part of the drive to grow its competitiveness, Hass will use the cash injection for both expansions, setting up of strategic depots as well as competing in the open tender system used by oil marketing firms to win bids to import oil into the country.
Hass Petroleum is ranked Kenya’s eleventh oil marketer with a market share of 1.7 percent.
The firm also has significant oil logistics business for countries in the east African region.
The completion of the transaction remains subject to approval by the relevant regulatory authorities in the various countries in which Hass operates in.
Hass Petroleum founder and chairman Ali Hassan said the firm would continue to operate the business and work closely with OTI to grow and continue long-standing relationships with customers, suppliers and regulators.
“I am convinced that this partnership is a major step in ensuring Hass’ continued competitiveness across the region and I am confident that with OTI we can achieve our mutual long term growth aspirations,” Mr Hassan said.
Oman Trading International is using the acquisition as a launch pad into the African market.
“We are delighted to move onto the next phase of growth for OTI, agreeing our first major investment into Africa with Hass. Hass is a unique business with substantial scale and growth potential where we have enjoyed a long standing relationship,” OTI chief executive officer Talal Hamid Al-Awfi said during the signing of the deal.
Standard Advisory London Limited acted as exclusive financial advisers to OTI and KPMG Advisory Services Ltd Kenya acted as exclusive financial advisers to Hass.
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