Vivo proceeds with $203.9m deal to buy service stations
Vivo Energy said on Tuesday that it had secured regulatory approvals to buy Engen’s international operations in eight new countries, plus Engen’s operations in Kenya, in a $203.9m deal that will be settled in cash and shares.
Vivo Energy’s retail service station network will expand from 15 to 23 countries in Africa when the deal is closed on March 1, the company said in a statement. The new markets are Gabon, Malawi, Mozambique, Réunion, Rwanda, Tanzania, Zambia and Zimbabwe.
The Democratic Republic of Congo will be excluded from the tweaked transaction as the talks to attain regulatory approval are still underway.
Vivo — which listed on the London Stock Exchange and JSE earlier in May, has previously described the transaction as a "game changer" for the company — already owns and operates more than 1,800 Shell service stations in 15 countries on the continent.
Vivo will issue 63.2-million new shares at 165p per share, while $62.1m will be settled in cash. As a result, Mauritius-domiciled Engen Holdings will have a stake of about 5% in Vivo.
"Today’s announcement opens an important new chapter for Vivo Energy," CEO Christian Chammas said in a statement, "and we look forward to welcoming about 350 new employees, adding eight new countries to our network, and increasing our target market by nearly 150-million people to about 35% of the African population."
Correction: September 19 2018
An earlier version of this article stated that Vivo had secured regulatory approvals to buy Engen’s international operations in eight Sub-Saharan countries.