Vivo Energy acquisition of Engen now complete

Engen and Vivo Energy have announced the completion of the transaction to combine their respective businesses, with PETRONAS selling its 74% shareholding in Engen to Vivo Energy. The combined Vivo Energy Group now has over 3,900 service stations, and more than two billion litres of storage capacity across 28 African markets.

The Phembani Group, Engen’s long-standing Broad Based Black Economic Empowerment (B-BBEE) shareholder is continuing its association with Engen and will remain invested as a 21% shareholder in the South African business. A new 5% employee share ownership programme is being created, resulting in Engen South Africa being 26% owned by historically disadvantaged persons.

In a joint statement, Stan Mittelman, CEO of the Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, said: “We are delighted to conclude the transaction, and will now work together to take the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation well for growth and success in the years to come.”

SOURCE | ENGEN

Mittelman and Naidoo added: “As part of the transaction, Vivo Energy has committed to invest a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business, for the benefit of the South African population. We have also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country.”

Chris Bake, Chairman of Vivo Energy, concluded: “I would like to thank PETRONAS for its stewardship of Engen over the last 25+ years. Together with the Phembani Group, they have grown Engen into a valuable corporate citizen. The combination of Vivo Energy and Engen to create a Pan-African champion not only benefits customers in South Africa and across the continent, but also sets up the new Group to achieve its vision to be Africa’s leading and most respected energy business.”

The Vivo Energy Group operates and markets its products in countries across North, West, East and Southern Africa. The newly extended Group has a network of over 3,900 service stations in 28 markets operating under the Engen and Shell brands and exports lubricants to a number of other African countries. Its retail offering includes fuels, lubricants, card services, convenience stores, restaurants, and other non-fuel services. .