Reliance Exploration and Production plans to sell all of its interest in Gulf Africa Petroleum Corporation (GAPCO).
GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda, which are involved in petroleum product imports, trading, storage, distribution, supply and transportation of oil products in east Africa.
Since Reliance acquired the 76% equity interest in GAPCO, the company has significantly grown and is one of the leading petroleum marketing companies in east Africa, with 260 kilolitres of storage capacity.
In a statement, Reliance says that its agreement to sell its interest is part of a joint transaction, where both Reliance and the minority shareholder have agreed to sell their entire respective holdings for cash.
The net proceeds of the sale will be finalised upon completion of the transaction, which is expected to be within the coming months.