Essar exits from Kenya Petroleum Refineries for $5 million

By: | Published: June 24, 2016 9:22 PM

Essar Group firm Essar Energy Overseas today announced that it will sell its 50 per cent stake in Kenya Petroleum Refineries (KPRL) for around USD five million to the African nation's government.

 The two entities, along with Essar Energy Holdings, have entered an agreement on the transfer of shares, Essar Energy said in statement.(Reuters)The two entities, along with Essar Energy Holdings, have entered an agreement on the transfer of shares, Essar Energy said in statement.(Reuters)

Essar Group firm Essar Energy Overseas today announced that it will sell its 50 per cent stake in Kenya Petroleum Refineries (KPRL) for around USD five million to the African nation’s government.

The two entities, along with Essar Energy Holdings, have entered an agreement on the transfer of shares, Essar Energy said in statement.

After this deal for an estimated value of about USD five million, the Kenyan government will own 100 per cent stake in the company, a source said.

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This transaction marks Essar Energy’s complete exit from KPRL, which operates a 4 million tonne oil refinery in Mombasa, Kenya and is consistent with Essar’s overarching goal of monetising non-core assets to focus on value creation in its core businesses, the statement said.

Essar Energy became a shareholder in KPRL in July 2009 through the acquisition of shares from Shell Petroleum Company Limited, BP plc and Chevron Global Energy, Inc. KPRL will now be 100 per cent held by the Kenyan government, Essar Energy said in release.

Essar Energy is an integrated energy company focused in India, the UK and other countries positioned to capitalise on the growing demand for energy. It has an assets worth USD 18 billion across power and oil & gas industries.

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