ZAWYA: ADNOC Distribution has agreed to sell a minority stake in Shell Downstream South Africa (SDSA) to Reatile Group after completing its acquisition of the business in 2027.

ADNOC Distribution and Reatile Group have signed a long-term Broad Based Black Economic Empowerment Agreement for the proposed acquisition of SDSA from Shell South Africa Holdings.

In July, ADNOC Distribution entered into a definitive agreement to acquire 100% of the share capital of SDSA in a deal with an implied enterprise value of about $1 billion.

While details of Reatile Group’s stake and financial commitments have not been disclosed, ADNOC Distribution earlier said it expects to sell a 28% stake in SDSA to a local empowerment partner and an Employee Stock Option Plan (ESOP).