Independent oil and gas company SacOil will acquire the assets and operations of independent fuel wholesaler and distributor Belton Park for up to R220-million.
Belton Park owns a substantial fleet of heavy-duty tankers that distribute over 20-million litres of fuel products a month to a diversified commercial and wholesale client base located across six provinces in South Africa.
SacOil states that the acquisition provides it with a stronger operational footprint in South Africa, thereby enabling the company to play a more meaningful role in the socioeconomic development of the country.
“This acquisition is in line with our strategic objectives to strengthen our existing platform in the downstream wholesale distribution market and further diversify our predictable revenue streams,” SacOil CEO Dr Thabo Kgogo said in a statement on Monday.
The acquisition will also increase SacOil’s consolidated revenues significantly, enhancing those already generated from the company’s production in Egypt, its existing crude trading business in Nigeria and its majority interest in Afric Oil.
“We see significant opportunities to grow within the wholesale distribution market in South Africa and expect to benefit from cost savings as we leverage synergies from our expanding operations in this market,” he said.
SacOil will pay an initial R100-million and a further payment of up to R120-million, conditional on the Belton Park assets achieving performance-related targets for the financial year to end February 28, 2018.