The combined Vivo Energy Group now has more than 3,900 service stations. (Image source: Engen)
Engen becomes part of Vivo Energy as the latter acquired 74% Engen share from PETRONAS
The transaction which began in February last year, came to a close with the securing of regulatory approvals and fulfilment of conditions precedent across the seven markets where Engen operates.
With B-BBEE shareholder Phembani Group continuing to hold 21% interests in Engen, and expansion of another 5% employee share ownership programme for historically disadvantaged persons, the new strategic partnership results in pan-African energy championship. “Having been invested in Engen since 1999, we are excited to continue our involvement, partnering in a strategic relationship with Vivo Energy in the next phase of Engen’s growth as a key player in South Africa’s economy,” said Phuthuma Nhleko, chairman and co-founder of Phembani Group.
The combined Vivo Energy Group now has more than 3,900 service stations, and beyond 2 billion litres of storage capacity across 28 African markets. Business will go on as usual with the objective of delivering added value and benefits for customers and stakeholders.
Growing operations in South Africa
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.”
Mittelman and Naidoo said, “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, said, “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.”
