Engen and Vivo Energy have confirmed the completion of a transaction, announced in February 2023, to combine their respective businesses, with PETRONAS selling its 74% shareholding in Engen to Vivo Energy.
The Vivo Energy Group now has over 3 900 service stations, and more than two-billion litres of storage capacity across 28 African markets and chairperson Chris Bake argued that the combination created a pan-African champion with a vision of becoming Africa’s leading energy business.
It has been confirmed that Phembani Group, Engen’s black-empowerment shareholder since 1999, will remain a 21% shareholder in the South African business.
In addition, a new 5% employee share ownership programme is being created to lift ownership by historically disadvantaged persons in Engen South Africa to 26%.
Phembani Group chairperson Phuthuma Nhleko expressed excitement at partnering with Vivo Energy in the next phase of Engen’s growth.
In a joint statement, Vivo Energy Group CEO Stan Mittelman and Engen MD Seelan Naidoo indicated that the enlarged Vivo Energy would invest to maintain and grow Engen’s operations in South Africa.
“We have also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country,” Mittelman and Naidoo said.