A distributor of shell branded fuels and lubricants to retail and commercial customers in Africa has agreed to acquire a downstream refined petrol company as it expands its African portfolio.
Vivo Energy plc announces that it has reached an agreement with Engen Holdings Limited to restructure the acquisition of Engen International Holdings (Mauritius) Limited by Vivo Energy’s subsidiary, Vivo Energy Investments B.V.
Through the transaction, Vivo Energy will acquire operations in eight new countries and over 225 Engen-branded service stations. This will take its total presence to over 2,000 service stations, across 23 African markets. The new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe. Engen’s Kenya operations (where Vivo Energy already operates) is the ninth country included in the transaction.
The transaction has been valued at around $198 million.
Christian Chammas, CEO, Vivo Energy believes that the transaction “opens an important new chapter for Vivo Energy.”
“We look forward to welcoming around 350 new employees, adding eight new countries to our network, and increasing our target market by nearly 150 million people to around 35% of the African population. Importantly, our existing business remains on track to achieve our full year guidance and we continue to invest in and grow our existing operations.”
“In Vivo Energy’s first seven years we invested to grow our business, increasing our network and adding new and refurbished shops and quick service restaurant offers. We have an opportunity to replicate this successful business model to drive growth and profitability in our new markets and look forward to updating the market in the new year on the scale of the opportunity ahead of us. We must seize this in order to deliver value for our shareholders, and move closer to achieving our goal of becoming Africa’s most respected energy business.”