ADNOC Distribution (ISIN: AEA006101017) (Symbol: ADNOCDIST) today announced that it has entered a definitive agreement to acquire 100% of the share capital of Shell Downstream South Africa (“SDSA“) from Shell South Africa Holdings (the “Proposed Acquisition“).
The Proposed Acquisition has an implied enterprise value of approximately $1 billion for 100% of the share capital prior to adjustment for net debt and working capital and is expected to close in 2027, subject to customary regulatory conditions, other conditions precedent and closing conditions. A 28% stake in SDSA is expected to be sold on to a local empowerment partner and Employee Stock Option Plan (ESOP) following completion of the Proposed Acquisition.
ADNOC Distribution will enter into a long-term brand licensing agreement upon completion of the Proposed Acquisition to retain the Shell brand for retail service stations and lubricants businesses in South Africa. Upon completion, Customers will continue to receive their preferred and trusted experience under ADNOC Distribution’s stewardship.
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “The Proposed Acquisition marks a significant milestone in ADNOC Distribution’s international growth strategy and reflects our confidence in South Africa as a high-potential, well-regulated fuel retail sector. Shell Downstream South Africa is a respected and financially strong business with deep roots in the local economy, and its values and ambitions align closely with our own. By bringing it into the ADNOC Distribution family, we plan to accelerate our international expansion, diversify our platform and create sustainable long-term value for our shareholders, our partners and the customers and communities that this business has proudly served for decades.”
