AFRICAN FUEL MARKET
Vivo Energy awaits DRC nod for service station deal
Vivo Energy is still waiting for regulatory approval from the Democratic Republic of Congo before it can wrap up the purchase of more than 300 service stations from Mauritius-domiciled Engen Holdings. Described by management as a "game-changer" for the company, which listed on the London Stock Exchange as well as the JSE in May, the Engen purchase is expected to boost Vivo’s annual earnings by about $50m, from $376m in its 2017 financials. The Engen deal is also key to Vivo’s continued growth, said CEO Christian Chammas. "The only way you can actually enter a new country is through acquisition and this acquisition gives us access to nine new countries in one go." Vivo owns and operates more than 1,800 Shell service stations in 15 countries in Africa. A deal with Engen will take that to over 2,100 in 24 countries, including the DRC, Mozambique, Rwanda and Zambia. Reporting interim results on Thursday, Vivo’s adjusted earnings before interest, tax, depreciation and amortisation grew 8...
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