By Sharon Chirwa:
Vivo Energy says it has completed transaction with Engen Holdings, thereby adding its operations to eight new countries and 230 service stations.
The new targeted markets include Malawi, Gabon, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe.
In a statement, the company says the deal comprises of an issue of 63.2 million new shares and $62.1 million dollars in cash.
“The cash element of the consideration has been funded by a draw down on Vivo Energy’s multi-currency facility. Following the share issuance, Engen will hold a circa 5.0 percent shareholding in Vivo Energy,” reads part of the statement signed by Vivo Energy Chief Executive Officer, Christian Chammas.
Vivo Energy’s network now has over 2,000 service stations in 23 African countries, including Malawi.
Engen’s Kenya operation—where Vivo Energy already operates—is the ninth country included in the transaction.
The statement further says completion of the transaction is an important chapter to the company.
It says the company also expects to improve in its financial performance.
“We are welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36 percent of the African continent,” Chammas said.
In its outlook, Vivo Energy believes that the 2018 financial performance of the target group will be similar to 2017.
The statement says increased fuel volumes, driven by the commercial segment, are expected to have been offset by lower margins.
Engen Managing Director and CEO, Yusa’ Hassan, says “Engen is excited to embark on this growth journey with Vivo Energy, and add another strong and well respected brand to the Vivo Energy Group”
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