Engen, Vivo Energy form Pan-African energy leader
Published on: May 21, 2024
Newly formed Vivo Energy Group spans 28 African markets with over 3,900 service stations.
Engen and Vivo Energy announced the completion of their merger, with PETRONAS selling its 74% stake in Engen to Vivo Energy. The new entity, known as the Vivo Energy Group, spans 28 African markets with over 3,900 service stations and more than two billion litres of storage capacity.
The Phembani Group, Engen’s longstanding B-BBEE shareholder, will continue its strategic involvement as a 21% shareholder in the South African operations. Additionally, a new 5% employee share ownership program is being established, making Engen South Africa 26% owned by historically disadvantaged persons.
Following the initial announcement in February 2023, the parties have worked diligently to secure regulatory approvals and fulfill conditions across the seven markets where Engen operates.
"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 organization for growth and success," stated Stan Mittelman, CEO of Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, in a joint statement.
The expanded Vivo Energy Group aims to maintain a 'business as usual' approach, ensuring continuity for customers, partners, suppliers, and employees. The focus will remain on delivering added value and benefits for all stakeholders.
"As part of the transaction, Vivo Energy has committed significant capital expenditure to maintain and grow Engen’s operations in South Africa. This includes investments in renewable solar power generation projects to support a just energy transition and benefit the South African population," Mittelman and Naidoo added.
"Having been invested in Engen since 1999, we are excited to continue our involvement 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.
Petronas first acquired shares in Engen in 1996 and became its majority shareholder in 1998.
