International Finance

London-listed Anglo African to buy Kenya oil logistics firm for Sh3.6 bn

Anglo African Agriculture, Comarco, Kenyan private port
Anglo African Agriculture shareholders will not assume more than 5% in the new combined entity

London Stock Exchange-listed Anglo African Agriculture (AAA) is set to acquire Comarco, a Kenya oil logistics company for Sh3.6 billion.

AAA said that the new combined entity is expected to raise Sh1.5 billion through an equity issue to fund working capital and growth.

As per the regulatory filings, AAA shareholders will not assume more than 5 percent in the new entity. This means that Comarco shareholders will be holding the majority of the stake in the new entity, also known as a reverse takeover, the Business Daily reported.

Comarco is the leading and specialised oil logistics contractor with more than 45 years of industry presence in the Kenya and the region. According to Business Daily, the company operates a 16.45-acre private port facility in Mombasa. The facility provides warehousing, transportation and logistics services to several oil and gas companies in the Eastern Africa region.

AAA Chairman David Lenigas said in a statement, “Large-scale infrastructure improvements (such as the SGR) only add to Mombasa’s strategic importance in the region.”

The existing owners of Comarco will be issued with new shares valued at Sh 0.64 a share. Comarco’s port facility will also house the 11,000 metric tonne LPG import and the storage facility built by Petredec and Rift Gas.

AAA said, “We have further been encouraged by the recent oil and gas transactional activity in the region and the ongoing liquefied natural gas-focused work in Mozambique, all of which bode well for Comarco Group’s marine logistics focused business.”

Besides Kenya, Comarco is also operating in Tanzania, Somalia, Mozambique, South Africa, Comoros, Reunion Island, and Mauritius.

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