Hass Petroleum Group has sold 40% of its shares to Oman Trading International (OTI) in a move that will see the Kenyan oil marketing company embark on its strategic growth and expansion plans across the Eastern, Central and Horn of Africa.
Established in 2006, Oman Trading International (OTI) is owned by the government through Oman Oil Company (OOC) with 70% and the State General Reserve Fund (SGRF) holding 30%. OTI has grown from modest beginnings into a global trader, delivering more than 20 million tonnes of energy products per year, with offices in Europe, the Middle East, U.S. and Asia.
Hass Petroleum Group will use the sale proceeds to enhance its market visibility by investing in additional distribution assets, especially on service stations across its key markets in the region. It will also boost the marketer’s working capital and increase competitiveness in the Open Tender System. In turn, OTI will provide its supply and trading capabilities to strengthen the Hass service offering, enhance services to consumers and contribute to economic growth across the region.
The Hass founder and management team will continue to operate the business and work closely with OTI to grow and continue long-standing relationships with customers, suppliers and regulators.
This acquisition is in line with the respective companies’ long-term strategies. OTI’s strategic priority of accelerating its growth by entering new emerging markets with high potential will fit well with Hass’ aspiration of being Africa’s leading oil marketing company. As a regular supplier of refined products to the Southern and East African region, this transaction will enable OTI and its new partner Hass to strengthen their businesses across a substantial African footprint.
The completion of the transaction remains subject to approval by the relevant regulatory authorities in the various countries where Hass operates.
“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,” said Abdinasir Ali Hassan, chairman and founder of Hass.
Hass is a unique business with substantial scale and growth potential where we have enjoyed a long-standing relationship; most importantly we share a common understanding and vision of the African energy market,” said Talal Hamid Al-Awfi, CEO of OTI.
Standard Advisory London Limited, a member of the Standard Bank Group acted as exclusive financial advisors to OTI and KPMG Advisory Services Ltd Kenya acted as exclusive financial advisors to Hass.