A.P. Moller Capital buys significant minority stake in LPG operator

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A.P. Moller Capital has acquired a significant minority stake in a Kenya-based business that operates the largest Liquified Petroleum Gas (LPG) marine and storage terminal in sub-Saharan Africa as well as the largest LPG downstream business in Kenya. The infrastructure investment management firm is acquiring a 29% stake in the business, KEG Holdings, for an undisclosed amount of capital. No additional terms of the transaction have been made available.

The business will use the capital to expand its operations in the East African region. KEG has managed to build its Kenyan downstream distribution business into a market leader within four years since its launch, a feat it aims to replicate in Rwanda and Uganda. The marine and storage terminal, which KEG operates under the terms of a 30-year license, is the lowest cost route for LPG imports into the region, a competitive advantage that the business can fully leverage.

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