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Geneva Energy Group in Talks to Sell African Business

Geneva-based energy group Addax & Oryx Group has entered exclusive negotiations with US private equity firm Emerging Capital Partners for the possible sale of its African downstream operations, writes Reuters. Emerging Capital Partners declined to comment.

Reuters – Geneva-based energy group Addax & Oryx Group said on Monday it had entered exclusive negotiations with U.S. private equity firm Emerging Capital Partners for the possible sale of its African downstream operations.

“Exclusivity has been granted to Emerging Capital Partners for the possible acquisition of the supply, storage and distribution business,” a spokeswoman for a firm said by telephone.

Emerging Capital Partners declined to comment.

In 2009, China’s Sinopec Group (0386.HK) bought the upstream African assets of Addax Petroleum in a $7.2 billion deal. But the trading and downstream assets were not part of the deal.

Last week, Reuters reported that the private equity firm was on a shortlist of potential buyers of Addax & Oryx Group assets.

The Addax spokeswoman did not specify how long the negotiation would last or the potential value of the assets.

The assets might be worth $250 million to $500 million, sources said last year.

(Reporting by Ikuko Kurahone and Emma Farge; Editing by Jane Baird and Alison Birrane)