Africa’s richest man, Aliko Dangote, has confirmed that his business interests acquired a stake worth $327m in Kenya Pipeline Company, strengthening his presence in the East African energy sector.
Dangote disclosed the investment at the Financial Times Africa Summit in London on Wednesday, saying his company had bought 25 per cent of the pipeline network. He did not identify the company that made the acquisition.
Kenyan media reports put the stake at 24.76 per cent, slightly below the figure cited by Dangote.
Business Daily reported on 19 October that 4.5 billion shares in Kenya Pipeline Company, valued at KSh42.5bn, changed hands in a block trade.
The shares were reportedly previously held by state-linked institutions, including the National Social Security Fund and the Unclaimed Financial Assets Authority. The transaction followed the company’s initial public offering earlier this year, during which the government bought shares amid weak demand from private investors.
The size of the holding is significant under Kenyan capital market rules, which require a mandatory takeover procedure when an investor acquires 25 per cent or more of a listed company’s voting shares. The reported 24.76 per cent stake falls just below that threshold.
The acquisition adds to Dangote’s expanding energy investments in Kenya, where construction began on 30 September on a proposed refinery in Lamu with a planned capacity of 700,000 barrels per day.
The refinery project has been valued at $17bn by Kenyan officials and $20bn by Dangote. It is expected to be completed in 2030.
Dangote has also offered regional governments a combined 30 per cent stake in the refinery as part of efforts to attract regional participation in the project.
However, the pipeline investment has prompted questions in Kenya’s parliament, while details of the acquiring company and the precise shareholding structure remain unclear.
It is also uncertain how the pipeline stake will relate to the planned refinery, including whether the two investments will have a direct commercial relationship.
The reported figures for the acquisition differ, with Dangote referring to a 25 per cent stake while Kenyan media reports put the holding at 24.76 per cent. The precise shareholding and transaction details would need to be confirmed through official market disclosures.
Discussion0