Vivo Energy Holding agrees to go into share transaction with Engen Holdings. Both companies have agreed to the transaction which is subject to regulatory approval.
Once the deal is completed, Vivo Energy will have 300 Engen-branded service stations and nine new countries added to its network. Completion of the transaction will increase Vivo’s presence in the African market. The company would automatically have more than 2,100 service stations spread across 24 markets in Africa. Zambia will also be among the nine Africa countries that are presently in the Vivo’s Energy network.
Vivo Energy's new market included in the transaction are; Zimbabwe, DR Congo, Zambia, Rwanda, Tanzania, Mozambique, Réunion, Gabon, and Malawi. Engen also operates in Kenya – a place where Vivo Energy is already operating. Kenya is also included in the transaction.
Engen will retain their businesses not stated in the transaction. These include a refinery in South Africa and their business, Engen Petroleum Limited – including investments in Ghana, Botswana, Namibia, Mauritius, Lesotho, and Swaziland.
According to Christian Chammas – Vivo Energy’s CEO, he said “Our shareholders have invested heavily in the business. During our first six years operating, our network has increased from between 1,300 to more than 1,800 service stations. Over 400 new and well-refurbished shops, as well as quick service restaurant offers, have been created so far. I am very happy with this arrangement we had with Engen, which also is subject to regulatory approval. The transaction will take us into new African markets, so we can increase our customer base and provide high-quality products and services.
Engen’s CEO and Managing Director, Yusa Hassan said, “Engen is very happy to sign such strategic undertaking with a company like Vivo Energy – a company whose mission for growth in the Africa market aligns with ours. Through this collaboration, we will work together to build each other’s strength for the benefit of our esteemed customers.
Vivo currently has over 1,800 service stations spread across 15 markets in Africa. The company markets, supplies and distributes Shell-branded lubricants and fuels to commercial and retail customers in regions they are operating. Vivo Energy is owned by Vitol and Helios Investment Partners, an investment firm with a focus on Africa.
The CEO and Chairman of Vitol, Ian Taylor, commented: “Africa is a very important continent for us and we are ready to invest continuously across the continent. We are very happy to go into such undertaking with Engen which will help to add 300 new Engen service stations to Vivo’s already expanding footprint.