SacOil agrees to acquire Phembani Oil Proprietary for c.$15.4m

South Africa-based independent African oil and gas company SacOil has agreed to acquire 100% of Phembani Oil Proprietary Ltd for up to a maximum of R200m, or about $15.4m.

Phembani's sole asset was a 71% stake in Afric Oil Group, one of the largest independent fuel distributors in South Africa, distributing more than 30m litres of fuel product monthly.

The consideration would be split into an unconditional initial consideration of R147.3m and a conditional consideration of up to R52.7m, conditional upon Afric Oil attaining performance related targets for the year ending 31 December 2017.

The acquisition was from Gentacure Proprietary Ltd and holding company Moopong Investments Holdings Proprietary Ltd.

Following completion, SacOil would hold a 71% indirect interest in Afric Oil, with the remaining 29% interest held by The Compensation Fund, a fund managed by the Public Investment Corporation SOC Ltd, the largest fund manager on the African continent.

At 10:20 GMT, shares in AIM-quoted SacOil were flat at 0.82p each.