Vivo finalises Engen acquisition deal
Vivo Energy has gotten the official nod to add to its operations over 200 Engen-branded service stations in 9 Sub-Saharan countries.
In a joint statement yesterday, Vivo Energy together with Engen announced that all required regulatory and competition authorities’ approvals have been received for the transfer of Engen’s international operations in the Sub Saharan countries.
Completion of transfers has been scheduled for 1 March 2019.
“The restructured transaction will add operations in eight new countries and over 225 Engen-branded service stations to Vivo Energy’s network, taking its total presence to over 2 000 service stations, across 23 African markets,” the two companies said in the press statement.
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.
Engen said it also continues its discussions with the government of the Democratic Republic of Congo regarding the transfer of the subsidiary holding Engen’s DRC-related interests.
Engen retains its interest in Engen Petroleum Limited (its South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of the transaction.
As per the agreement on 4 December 2017 and as a result of the restructure of the transaction, consideration in respect of the transfer of EIHL is US$203.9 million, comprising an issue by Vivo Energy of 63.2 million new shares valued at Vivo Energy’s IPO Offer Price of 165 pence per share and US$62.1 million in cash, resulting in EHL holding a circa 5.0% shareholding in Vivo Energy. The cash element of the consideration will be funded by a draw down on Vivo Energy’s multi-currency facility, established in May 2018, it said.
Commenting on the transaction, Christian Chammas, CEO of Vivo Energy said: “Today’s announcement opens an important new chapter for Vivo Energy and 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.”
Yusa Hassan, managing director and CEO of Engen commented: “Engen is pleased with this transaction, which will enable the parties to proceed to completion on 1 March 2019. It aligns with our growth aspirations in Africa. We look forward to becoming a Vivo Energy shareholder, and adding another strong and well respected brand to the Vivo Energy group.”
In a joint statement yesterday, Vivo Energy together with Engen announced that all required regulatory and competition authorities’ approvals have been received for the transfer of Engen’s international operations in the Sub Saharan countries.
Completion of transfers has been scheduled for 1 March 2019.
“The restructured transaction will add operations in eight new countries and over 225 Engen-branded service stations to Vivo Energy’s network, taking its total presence to over 2 000 service stations, across 23 African markets,” the two companies said in the press statement.
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.
Engen said it also continues its discussions with the government of the Democratic Republic of Congo regarding the transfer of the subsidiary holding Engen’s DRC-related interests.
Engen retains its interest in Engen Petroleum Limited (its South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of the transaction.
As per the agreement on 4 December 2017 and as a result of the restructure of the transaction, consideration in respect of the transfer of EIHL is US$203.9 million, comprising an issue by Vivo Energy of 63.2 million new shares valued at Vivo Energy’s IPO Offer Price of 165 pence per share and US$62.1 million in cash, resulting in EHL holding a circa 5.0% shareholding in Vivo Energy. The cash element of the consideration will be funded by a draw down on Vivo Energy’s multi-currency facility, established in May 2018, it said.
Commenting on the transaction, Christian Chammas, CEO of Vivo Energy said: “Today’s announcement opens an important new chapter for Vivo Energy and 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.”
Yusa Hassan, managing director and CEO of Engen commented: “Engen is pleased with this transaction, which will enable the parties to proceed to completion on 1 March 2019. It aligns with our growth aspirations in Africa. We look forward to becoming a Vivo Energy shareholder, and adding another strong and well respected brand to the Vivo Energy group.”
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