A unit of Vitol Group agreed to acquire Petroliam Nasional Bhd.’s 74% stake in Engen, South Africa’s largest fuel-station chain, forming a retailer that spans the continent.
The acquisition of the controlling stake in Engen from the Malaysian national oil company by Vitol’s Vivo Energy will help the energy trader form a group with 3 900 service stations in 27 African nations, the companies said in a joint statement on Thursday. They didn’t disclose financial details. The stake was expected to draw bids of about $2 billion, Bloomberg reported last year.
Petronas, which has been exploring options for a sale for some years, first acquired shares in Engen in 1996 and become its majority shareholder two years later. The company has about 1 300 service stations across seven African countries.
The acquisition “will be a step change in our growth and represents a significant commitment to the South African market,” Vivo’s Chief Executive Officer Stan Mittelman said in the statement. The company has more than doubled in size since its formation in 2011.
Phembani, a South African investment firm founded by former MTN Group Chief Executive Officer Phuthuma Nhleko, will remain a 21% shareholder in the South African business.
Morgan Stanley and Rothschild & Co. advised Petronas on the sale. Rand Merchant Bank and Standard Bank Group advised Vivo.
© 2023 Bloomberg
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