Essar Energy in talks with govt over refinery sale
04 October 2013, 14:44
Nairobi - Talks between Kenya and India's Essar Energy over the company's plans to sell its 50 percent stake in the Mombasa refinery to the government are yet to be concluded, Treasury Secretary Henry Rotich said on Friday.
"Talks are still ongoing," Rotich said when asked whether the government, already running a budget deficit of 7.9 percent, can afford to pay $5 million for the stake.
Essar on Thursday said it would exercise a $5 million put option it had in its shareholder agreement with the government, which owns the other 50 percent of the refinery, and which gave it the right to sell its stake to the state under certain conditions.