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Rubis acquires shell's lpg and petroleum product distribution business in the west indies and in french guiana

09|12|2005

Following a spin-off agreement, RUBIS has declared its intention to acquire SAGF, a SHELL subsidiary company. SAGF is the leading distributor of LPG and petroleum products in the West Indies and in French Guiana and the second largest shareholder (24%) of the Fort-de-France refinery. The entity to be acquired earns a turnover of €200 million for a normalised net profit of €11 million.

The provisional acquisition price is €116 million for SAGF's entire stock, before cash and scope adjustments linked to the pre-emptive rights of certain partners in SAGF's aviation subsidiaries.

This operation is an excellent opportunity for RUBIS to reinforce its presence in LPG distribution, a sector where SAGF is the leading regional operator with nearly 20,000 metric tons of sales. The acquisition will also enable RUBIS to bolster and expand its positions in the downstream petroleum sector, namely the distribution of fuel via a network of 54 SHELL service stations, distribution of domestic and marine fuel oil, asphalt, aviation fuel and lubricants. The French West Indies also provides a solid development base for expansion in the Caribbean region, where RUBIS would be looking out for other interesting opportunities.

The transaction is therefore a significant-sized acquisition that might require a capital increase of around 1 for 6 (in the form of bonus stock warrants for shareholders only) to shore up financing and provide a platform for future developments. Earnings per share is expected to rise significantly after financing, while the overall financial structure remains sturdy, in line with the Group's strategy.

The acquisition should be finalised sometime during the last quarter of 2005, subject to the approval of the French Authority in charge of competition.

RUBIS is listed on the Euronext Paris market (B compartment) - ISIN code- FR0000121253.

International Operator specialised in the downstream petroleum sector