VIVO Energy Holding B.V. this week entered into a share transaction with Engen Holdings Limited in a transaction that should see Vivo expand to Zimbabwe and eight other African countries.
The transaction is in relation to the purchase of shares in Engen International Holdings for the exchange of shareholding in Vivo Energy, with a possible cash element and subject to regulatory approval. Vivo is currently present in 15 African countries and the transaction will have its market share increase to 24 countries.
The new markets for Vivo included in the transaction are Democratic Republic of Congo (DRC), Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen’s Kenya operations -where Vivo Energy already operates- are also part of this transaction.
“Upon completion of this transaction, nine new countries and over 300 Engen – branded service stations will be added to Vivo Energy’s network, taking Vivo Energy’s total presence to over 2,100 service stations, across 24 African markets,” said Vivo in a statement.
Engen Holdings Limited will retain its interest in Engen Petroleum Limited — the South African business and refinery — and Engen’s business in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho which are not part of the transaction.
Vivo Energy chief executive officer Christian Chamma 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 managing director Yusa Hassan, said the transaction was aligned with the firm’s growth aspirations in Africa and would build on each other’s strengths from the collaboration.
With over 1 800 service stations across 15 African markets Vivo Energy sources, distribute, market and supply 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.