Vivo Energy is set to purchase shares in Engen International Holdings Limited for the exchange of a shareholding in Vivo Energy and a possible cash settlement. If the transaction gets regulatory approval, the transaction will add nine new countries and over 300 Engen branded service stations to Vivo Energy’s network. This will add up Vivo Energy’s presence in 24 African markets and 2100 service stations.
Vivo Energy’s new markets with this transaction includes DR Congo, Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi while Engen’s Kenya operations are also a part of this transaction where Vivo Energy already operates. However, Engen Holdings will maintain its interest in Engen Petroleum Limited and its’ businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho are not a part of this deal.
According to Christian Chammas, CEO, Vivo Energy :
“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 also said the following about the transaction:
“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.”
Vivo Energy operates in Africa with over 1800 service stations across 15 African countries and also sources, distributes, markets and supplies Shell- branded fuels and lubricants across the African Continent. Vivo Energy is jointly owned by Vitol and Helios Investment Partners and their representative also commented regarding the investment.
Ian Taylor, Chairman and CEO of Vitol said the following regarding the transaction:
“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 also commented on the topic:
“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.”
About Vivo Energy:
Jointly owned by energy and commodities company Vitol and Africa focused private investment firm Helios Investment Partners, Vivo Energy was established in 2011. With the aim to be Africa’s most respected energy company, Vivo energy distributes and markets Shell-branded fuels and lubricants. It has a network of 1800 service station spread across 15 countries and also exports lubricants to a number of other African countries. It employs around 2360 employees and has access to approximately 900000 cubic meters of fuel storage capacity.
An oil company focusing on the downstream refined petroleum product market, Engen has a presence across sub- Saharan Africa and the Indian Ocean Islands. The company is mainly involved in the refining of crude oil, the marketing of primary refined petroleum products and the provision of an extensive retail network. Additionally, Engen is also a member of the PETRONAS Group.