Vivo Energy Holding has Monday agreed to enter into a share transaction with Engen Holdings in relation to the purchase of shares in Engen International Holdings for the exchange of a shareholding in Vivo Energy, with a possible cash element.
Upon completion of this transaction, nine new countries and over 300 Engen-branded service stations will be added to Vivo Energy’s network, taking Vivo Energy’s total presence to over 2,100 service stations, across 24 African markets.
The new markets for Vivo Energy included in the transaction are DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen’s Kenya operations (where Vivo Energy already operates) are also part of this transaction.
Engen Holdings will retain its interest in Engen Petroleum Limited (the South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of this transaction.
Commenting on the transaction Christian Chammas, CEO, Vivo Energy said: “In our first six years our shareholders have invested to grow Vivo Energy, increasing our network from around 1,300 to over 1,800 service stations and adding over 400 new and refurbished shops and quick service restaurant offers. I am delighted with today’s agreement with Engen which, subject to regulatory approval, will add a number of new African markets to our business so that we can offer high quality products and services to significantly more customers.”
Yusa Hassan, Managing Director and CEO of Engen commented: “Engen is excited to enter into this strategic undertaking with Vivo Energy, which is clearly aligned with our growth aspirations in Africa. We will seek to build on each other’s strengths from this collaboration for the benefit of our customers across the continent.”
Currently with over 1,800 service stations across 15 African markets Vivo Energy sources, distributes, markets and supplies Shell-branded fuels and lubricants to retail and commercial customers across the continent. Vivo Energy is jointly owned by the energy and commodities company Vitol and the Africa-focused private investment firm Helios Investment Partners.
Ian Taylor, Chairman and CEO of Vitol said: “Africa is a very important part of our business and we are committed to continuing to invest across the continent. We are delighted to be entering this undertaking with Engen that will add 300 Engen service stations to Vivo Energy’s expanding footprint.”
Tope Lawani, co-founder and Managing Partner of Helios Investment Partners, said: “This transaction underscores our commitment to Vivo Energy’s growth. It is consistent with our investment strategy of building market-leading, geographically diversified platform businesses across Africa.”
Chammas added: “Engen is a strong and well respected brand, and complements our existing business. Upon completion of the transaction we look forward to welcoming the Engen team into Vivo Energy and working with them to grow our combined business. Our vision is to become the most respected energy business in Africa. Today’s announcement takes us one step closer to achieving that goal.”