ADNOC Distribution announced on Tuesday that it had entered a definitive agreement that covers the acquisition of 100% of the share capital of Shell Downstream South Africa (SDSA).
ADNOC Distribution announced on Tuesday that it had entered an agreement that covers the $1 billion (about R16,2bn) acquisition of 100% of Shell Downstream South Africa (SDSA).
ADNOC said that the $1bn was the implied value prior to adjustment for net debt and working capital. “This includes its 580 company and dealer-owned fuel stations, as well as its wholesale fuel, aviation and lubricants operations.”
ADNOC added that the proposed acquisition marks a major step towards ADNOC Distribution’s ambition to become a global mobility and convenience retailer, while advancing its fuel retail footprint in Africa.
“The proposed acquisition is projected to boost ADNOC Distribution’s earnings per share by 6% in the first full year after completion and generate an IRR (internal rate of return) in excess of the company’s hurdle rate, delivering immediate shareholder value.”
