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PETRONAS sells its 74% stake in Engen to Vivo Energy
PETRONAS has reached an agreement to sell its entire 74% interest in Engen Limited to Vivo Energy, the company that markets and distributes Shell branded petroleum products in Africa and a subsidiary of multinational energy company Vitol.
PETRONAS first acquired shares in Engen in 1996 and became its majority shareholder in 1998. Engen’s primary business is in the marketing of petroleum, lubricants and functional fluids, chemicals and retail convenience services. It currently operates around 1,300 service stations across seven countries in sub-Saharan Africa and the Indian Ocean Islands.
SOURCE | VIVO ENERGY
With Engen and Vivo Energy joining forces to form one group, the combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries. Vivo Energy is a retailer and distributor of fuels and lubricants to retail and commercial customers, with over 2,600 service stations across 23 African countries, who use the Engen and Shell brands.
Stan Mittelman, CEO of Vivo Energy said: “Vivo Energy’s focus has been to invest to grow our business, and I am proud that we have more than doubled the size of our network since our formation in 2011. Four years ago, we acquired the Engen business in nine African markets, and have since worked to enhance and develop the business. Vitol’s acquisition of 100% of Vivo Energy last year brings more opportunity to grow even faster. Completion of this transaction, which reunites the Engen brand across Africa, will be a step change in our growth and represents a significant commitment to the South African market whilst enhancing Vivo Energy’s portfolio in other important markets.”
The transaction is currently pending regulatory approvals and fulfilment of conditions precedent. .