Netherlands-based Vivo Energy Holdings is set to acquire a controlling stake in Engen Holdings through a share swap deal targeting operations in Zimbabwe and several countries in the region.
“Vivo Energy Holding B.V. has today agreed to enter into a share transaction with Engen Holdings Limited a 100 percent subsidiary of Engen Limited, in relation to the purchase of shares in Engen International Holdings (Mauritius) Limited for the exchange of a shareholding in Vivo Energy, with a possible cash element,” the companies said in a joint statement.
The deal is subject to regulatory approvals.
Vivo supplies Shell-branded fuels and lubricants in 16 African countries while Engen focusses on downstream refined petroleum products with a presence across sub-Saharan Africa.
In addition to Zimbabwe, other countries included in the transaction are DR Congo, Réunion, Zambia, Gabon, Rwanda, Mozambique,Tanzania and Malawi as well as Kenya
“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 chief executive, Christian Chammas.
Engen will retain its South African business and refinery, and as well as operations in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho.
Vivo Energy currently has over 1 800 service stations across 15 African countries.
In Zimbabwe, Engen has over 55 service stations.- The Source