Shell owner acquires stake in Engen Petroleum
Vivo Energy, the firm operating Shell branded outlets has completed the acquisition a 5 percent stake in Engen Petroleum adding to its belt, the operations of 230 service stations in 8 countries which have until now operated under the Engen brand.
The transaction brings Vivo Energy’s network to over 2,000 service stations across 23 African countries to include new markets in Gabon, Malawi, Mozambique, the Reunion Island, Rwanda, Tanzania, Zambia and Zimbabwe.
Vivo likewise acquires the operations of Engen in Kenya as part of the transaction.
“Today’s announcement opens an important new chapter for Vivo Energy, welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36 percent of the African continent,” said Vivo Energy Chief Executive Officer Christian Chammas.
Mr. Chammas who spoke in London on March 1, 2019 during the disclosure of the final offering which opened on September 18, 2018, said he expected the conclusion of the deal to replicate Vivo’s running business model with the aim of driving further profitability for the enterprise.
The done-deal is comprised of the issuance of 63.2 million shares by Vivo Energy and a cash payout amounting to Ksh. 6.2 billion (USD 62.1 million)
Engen Petroleum is expected to maintain interest in its South African business which includes a refinery to add to its other markets in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho who do not fall as part of the Vivo’s acquisition.
Engen’s business in the Democratic Republic of Congo (DRC) remains under the evaluation of Vivo Energy, pending the conclusion of deliberations between Engen and the DRC government on the potential transfer of the subsidiary.
Engen, is a member to the FORTUNE 500 and is majority owned by the Malaysian based Petronas Corporation.
No comments yet.