Shell and Engen parents exchange DNA for deeper penetration in more African countries
PRNewswire – Downstream petroleum company, Engen, has kept its businesses in six African countries plus Mauritius, out of a deal with Vivo Energy that will lead to cross-shareholding between the two energy operators.
This week, Vivo Energy Holdings B.V. announced it has entered into a share transaction with Engen Holdings (Pty) Ltd, a 100% subsidiary of Engen Ltd, to acquire shares in Engen International Holdings (Mauritius) Ltd, in exchange for shares in Vivo Energy. The transaction must still be approved by regulators.
The shareholding transaction does not affect Engen Holdings’ interest in Engen Petroleum Ltd, the operating entity for Engen South Africa which includes its refinery and downstream business, and Engen’s companies in Mauritius, Ghana, Namibia, Swaziland and Lesotho.
Included in the transaction are the DRC, Zimbabwe, Reunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi, where Vivo will now established a branded presence, Kenya is also included but Vivo already has operations there.
The nine countries included in the transaction will add over 300 Engen service stations to Vivo Energy’s network which will then consist of over 2100 service stations in 24 African countries.
Chief Executive of Vivo Energy, Christian Chammas, said: “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 commented: “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 is the downstream distributor for Shell fuel and lubricants. It is a joint venture between Helios Investments and Vitol.
Vivo Energy is jointly owned by the energy and commodities company Vitol and the Africa-focused private investment firm Helios Investment Partners. Engen is a member of the PETRONAS Group.