The sell of assets has been reached through KenolKobil’s subsidiaries in Uganda and Rwanda.
The Board of KenolKobil company says the acquisition of the stations is expected to contribute to the group top and bottom lines.
“The acquisitions are in line with the Board’s growth strategy through organic and inorganic retail network expansion,” said a statement from the company’s Board, which added that it had been working on the transaction since February 2018 and is expected to conclude it by end of March 2019.
The buyout will see the total retail network of the KenolKobil group rise to 433 stations, of which 200 stations are in Kenya. Kobil Uganda’s retail outlets will increase to 56 stations while Kobil Rwanda will have 61 stations under its control.
The firm indicates that out of the 149 Million outstanding shares under the plan, Ohana has been awarded options to purchase 88 Million shares.
However, under existing ESOP rules an executive can only purchase up to 25 percent of the outstanding ESOP shares which in Ohana’s case, amounts to 37.25 million shares.
Genghis Capital predicts that the Board will amend these rules to accommodate the remaining 50.57 million shares from the 88 million shares awarded to Ohana.
The move will be beneficial to Rubis Energie which has proposed to acquire KenoKobil as it will have the CEO’s 88 million shares under its irrevocable undertaking.