Standard Bank advises Vivo Energy on the creation of a pan-African energy champion
Standard Bank has advised Vivo Energy on its combination with Engen. By combining Engen and Vivo Energy, the group will be one of the largest energy distribution companies on the continent.
The combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries. As the clear market leader in South Africa, Engen has around 1,300 service stations across seven African countries. Vivo Energy is a major pan-African retailer and distributor of fuels and lubricants to retail and commercial customers, with over 2,600 service stations across 23 African countries, using the Engen and Shell brands.
Standard Bank acted as joint financial adviser on the transaction, which will allow Vivo to take ownership of Engen, the largest downstream fuel retail business in SA, and position itself to become a leader in the African downstream and fuel supply market. We leveraged our deep understanding of the downstream oil and gas market in sub-Saharan Africa and our expertise in solving for local and regulatory requirements to support Vivo’s growth ambitions.
PETRONAS will sell its 74% shareholding in Engen to Vivo Energy at completion. The Phembani Group, PETRONAS’ long-standing partner in Africa and Engen’s B-BBEE shareholder, is continuing its strong association with Engen and will remain invested as a 21% shareholder in the South African business. The transaction will further benefit employees of Engen through a newly implemented 5% employee share ownership programme, resulting in Engen South Africa being 26% owned by previously disadvantaged parties.
Vivo plans to grow the business by integrating Engen with Vivo’s pan-African downstream fuel retail network, leveraging its energy transition and platform strategy to create a leader in the Africa downstream and fuel supply market.
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.