Engen to sell retail assets in 10 African countries to Vivo Energy in share swap deal

Vivo Energy Holding B.V. has agreed to purchase more than 300 Engen-branded service stations in 10 countries in Africa owned by Engen International Holdings (Mauritius) Limited in exchange for shares in Vivo Energy, with a possible cash element.

Engen International Holdings (Mauritius) is a 100% subsidiary of Engen Limited, which is in turn owned by Malaysia’s state oil and gas company, PETRONAS Group. The transaction is subject to regulatory approval.

Upon completion of the transaction, nine new countries will be added to Vivo Energy’s network, taking Vivo Energy’s total presence to 24 African markets and more than 2,100 service stations. 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.

Commenting on the transaction, Christian Chammas, CEO of 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.”

“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,” said Engen’s Managing Director and CEO Yusa Hassan.

Currently with more than 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.

“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,” said Ian Taylor, chairman and CEO of Vitol.

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.”