Engen is combining its fuel stations outside of South Africa with Vivo Energy-owned Shell's forecourt network in a deal that will improve its expansion prospects and management as the company emerges from a difficult year. The deal has received support from Phuthuma Nhleko's Phembani Group, a longtime shareholder in Engen, which sees lucrative growth in the downstream fuel market for the rest of Africa. But Phembani CEO Kennedy Bungane has quashed speculation that the deal signals a potential exit of Engen's majority owner Petronas, after talks to sell Engen to South African government-owned PetroSA collapsed in 2015. "We are not aware of any plans by Petronas to sell their stake in Engen. If anything, Petronas, like ourselves, is committed to Engen," Bungane said. Earlier this year Phembani increased its stake in Engen to 26% from 20%. It has an appetite for a larger holding. Engen's transaction, announced earlier this week, sees Engen International Holdings, a subsidiary of Engen ...
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