Vivo Energy Holding B.V. (“Vivo Energy”) has entered into a share transaction deal with Engen Holdings (Pty) Limited involving a share exchange with a possible cash element.
BY BUSINESS REPORTER
The transaction is subject to regulatory approval, the two companies said on Monday.
Upon completion of the 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 (Pty) Ltd 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.
Vivo Energy chief executive officer, Christian Chammas was delighted with the agreement with Engen which, subject to regulatory approval, will add a number of new African markets to the company’s business.
“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,” Chammas said.
Engen managing director and chief executive officer, Yusa Hassan said; “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.”