Billionaire Dangote Breaks Silence on 25% Stake in KPC Amid Questions

Nigerian billionaire Aliko Dangote has confirmed that his company acquired a 25 per cent stake, in Kenya Pipeline Company (KPC) in a transaction valued at approximately KSh42.5 billion ($327 million).

Dangote made the announcement during the 13th annual Financial Times Africa Summit in London on Wednesday, October 21, although he did not disclose which company within his business group completed the purchase.

“We bought 25 per cent of their pipeline network for the distribution of petroleum products,” Dangote said, confirming his group’s entry into the Kenyan energy infrastructure sector.

According to Bloomberg, the announcement identifies the buyer behind a major share transaction involving 4.5 billion KPC shares reported by the Nairobi Securities Exchange (NSE) on Monday.

The shares were traded at prices ranging from KSh9.02 to KSh9.36 each, bringing the total value of the transaction to approximately KSh42.46 billion.

The acquisition places Dangote among the major investors in KPC, a key player in the transportation and distribution of petroleum products in Kenya and the wider region.

The deal also raises questions about the regulatory steps that may follow the purchase. Under Kenya’s capital markets rules, an investor acquiring 25 per cent or more of a listed company’s voting shares triggers a mandatory takeover procedure, which requires formal notification to the Capital Markets Authority (CMA).

The requirements are intended to ensure that significant changes in ownership of listed companies follow established market rules and provide clarity to shareholders.

KPC was previously wholly owned by the Kenyan government before the state moved to sell part of its stake through an Initial Public Offering (IPO).

The public offering opened on January 19 and closed on February 19, paving the way for the company’s listing on the NSE on March 9. The government sold 65 per cent of its shares in the process.

The sale marked a major change in the ownership structure of the state-linked company, opening it up to private investors through the stock market.

Dangote’s confirmation now provides further clarity on the ownership of a substantial block of KPC shares. However, he did not name the specific entity involved in the purchase or provide further details about the investment’s next steps.

LINK: https://www.kenyans.co.ke/news/128753-dangote-confirms-acquisition-25-stake-kpc-amid-questions?utm_source=Facebook&utm_medium=ME&fbclid=IwY2xjawVFjdBleHRuA2FlbQIxMQBwZG9mBHNydGMGYXBwX2lkDzQwOTk2MjYyMzA4NTYwOQABHsqdtMaDvYfUilACxChOvxctp14jmQMCx4fL-KQ-LlTOSUIOBFDYN8TGIn6D_aem_9P3F0ioiqwQerjjKBPSd3g

Newsroom-Kenya feedback-opera-news-app@opera.com