JOHANNESBURG - Petroleum company Vivo Energy said on Tuesday it had reached an agreement with Engen Holdings to restructure the acquisition of Engen International Holdings (Mauritius)Limited (EIHL) by its subsidiary Vivo Energy Investments B.V.
"The restructured transaction is now unconditional, aside from customary closing conditions including material adverse change clauses," it said.
"All required regulatory and competition authorities’ approvals have been received for the transfer of Engen’s international operations in nine Sub Saharan countries."
Vivo Energy said the restructure allowed for completion of the transaction, first announced last December, to proceed in respect of all countries other than the Democratic Republic of Congo (DRC). Completion has been scheduled for 1 March 2019.
The restructured transaction will add operations in eight new countries and over 225 Engen-branded service stations to Vivo Energy’s network, taking its total presence to over 2,000 service stations, across 23 African markets.
The new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe. Engen’s Kenya operations, where Vivo Energy already operates, make up the ninth country included in the transaction.
Consideration for the transfer of EIHL is US$203.9 million, comprising an issue by Vivo Energy of 63.2 million new shares valued at 165 pence per share and US$62.1 million in cash, resulting in Engen holding about five percent shareholding in Vivo Energy.
Vivo said Engen was still in discussions with the DRC government regarding the transfer of the subsidiary holding Engen’s DRC-related interests.
"Vivo Energy continues to evaluate the potential acquisition and negotiations with Engen are ongoing," it said.
Engen Holdings (Pty) Limited retains its interest in Engen Petroleum Limited (its South Africa business and refinery) and Engen’s businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of the transaction.
- African News Agency (ANA)