Oil and gas group SacOil said on Monday that it has secured an indirect controlling stake in Afric Oil by acquiring Phembani Oil in a R200m deal that will be settled in shares and cash.
Phembani Oil’s only asset is a 71% direct interest in Afric Oil, which is one of the largest independent fuel distributors in SA, distributing more than 30-million litres of fuel product a month to a diversified client base.
"This truly transformational acquisition ... is in line with our strategy of diversifying SacOil’s operations into the downstream segments of the African oil and gas value chain and underpinning our business with low volatility and predictable revenue streams," CE Thabo Kgogo said in a statement.
Following the conclusion of the proposed deal, SacOil would own a 71% stake in Afric Oil and the balance would be held by the Compensation Fund, managed by the Public Investment Corporation.
SacOil will settle an initial R147.3m while the balance is conditional on Afric Oil attaining performance related targets for the year ending December.
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