Harare - United Kingdom-based fuel and lubricants retailer, Vivo Energy, is committed to furthering opportunities in commercial fuels, mining and lubricants business in Africa as well as increasing their company’s position as one of the largest Pan-African independent fuel and lubricants retailor by a wide margin, the company’s chief executive officer, Christian Chammas, has said.
This came out following Vivo Energy’s recent addition of eight more African countries to their network after completing a multi-million dollar purchase of the South African owned Engen Holdings (Pty) Limited.
The transaction that saw Vivo Energy pumping out $62, 1 million in cash and 63, 2 million new shares to Engen Holdings will open new markets for the fuel retailer under the Engen brand in Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe.
Vivo Energy has for the past years been operating in 15 African countries, namely Botswana, Cape Verde, Burkina Faso, Mauritius, Ghana, Ivory Coast, Mali, Madagascar, Morocco, Senegal, Namibia, Uganda, Tunisia and South Africa under the Shell brand, and the recent development means their presence has risen to 23 African countries.
Through this transaction, Vivo Energy will open 230 new fuel service station in Africa making it to over 2000 Vivo Energy fuel stations across Africa.
Chammas said his company respects their African relations and the recent development was very important to his organization.
“Vivo Energy is pleased to announce the completion of the transaction with Engen Holdings (Pty) Limited, as previously announced on 18 September 2018.
”The transaction adds operation in eight new countries and 230 Engen-branded service stations to Vivo Energy’s network, taking its total presence to over 2000 service station across Africa.
“The new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe
“As per previous announcements, consideration for the transaction comprises an issue by Vivo Energy of 63.2 million new shares and $62.1 million in cash.
“Engen will hold a 5.0 % shareholding in Vivo Energy,” he said.
Chammas added “This development opens an important new chapter for Vivo Energy, welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36% of the African continent.
The United Kingdom based company started their African journey back in 2012, and has fast become a force to reckon with in the African fuel sector.
The Vivo Energy CEO promised to make their brand even bigger, within the African set up.
“In Vivo Energy’s first seven years, we invested to grow our business, increasing our service station network and adding new and refurbished convenience retail and quick service restaurant offers.
“We have an opportunity to replicate this successful business model to drive growth and profitability in our new markets, we must seize this is order to benefit all our customers, deliver value for our shareholders, and move closer to achieving our goal of becoming Africa’s most respected energy business,” he said.
Meanwhile, Yusa Hassan, managing director and CEO of the Engen Holdings, has expressed commitment and excitement towards this development.
“Engen is excited to embark on this journey with Vivo Energy.
“Vivo Energy is a strong and well respected brand, we look forward to working with them,” Hassan said.