Vivo Energy, the London-listed oils company that holds the Shell brand in Africa, has added Zimbabwe to its list of new markets after the completion of a takeover of Engen assets across the continent.
Vivo is taking over at least 2,000 Engen service stations, across 23 African markets, as part of a deal that adds eight new countries and 230 Engen-branded service stations to Vivo Energy’s network. Apart from Zimbabwe, the other new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, and Zambia. Engen’s Kenya operation, where Vivo Energy already operates, is the ninth country included in the transaction.
The transaction comprises an issue by Vivo Energy of 63.2 million new shares and US$62.1 million in cash. The cash element has been funded by a draw down on Vivo Energy’s multi-currency facility. Following the share issuance, Engen will hold a 5% shareholding in Vivo Energy.
Commenting on the transaction in a statement on Friday, Christian Chammas, CEO, Vivo Energy said: “Today’s announcement opens an important new chapter for Vivo Energy, welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36% of the African continent.”
Yusa’ Hassan, Managing Director and CEO of Engen commented: “Engen is excited to embark on this growth journey with Vivo Energy, and add another strong and well respected brand to the Vivo Energy Group.”
Vivo Energy is part of Vitol, the world’s largest independent oil trader, and in May last year launched on the London Stock Exchange in what was the largest Africa-focused IPO in more than a decade. Vivo is also listed on the Johannesburg Stock Exchange.