Why the Saudis could buyout Recaf Ok, the Saudi’s are a long shot but nonetheless still possible investors/partners, etc.; especially with Recaf presenting this week at the huge Oil Week conference in their back yard that will be sure to get their attention.
First of all, Namibia’s immediate neighbor to the south, South Africa, now gets half its oil from other African countries, Nigeria and now Angola with the remainder from Saudi Arabia. The Saudi’s can’t be happy about losing 50% already of their South African business and certainly won’t look forward to Namibia taking the other 50% once they come online since they are so close to South Africa. Also Namibia could build their own refinery taking away any potential refinery business.
Simply Recaf has a market capitalization of around a billion and could easily be acquired for two to three times this-like for 2 to 3 billion conservatively - almost petty cash for the Saudi’s and easily worth it to keep Namibia/Recaf/etc. from taking their current multi billion share of South Africa’s business.