UK-based downstream petroleum company Vivo Energy has closed on the purchase of the operations of South Africa-based petroleum distributor Engen Holdings in eight African countries excluding Ghana.
Vivo noted the move adds operations in eight new countries and 230 Engen-branded service stations to its network, taking its total presence to over 2,000 service stations across 23 African markets.
Vivo Energy paid for 63.2 million new shares and $62.1 million in cash funded by a draw down on its multi-currency facility. Following the share issuance, Engen will hold a 5 percent shareholding in Vivo Energy.
Vivo Energy said that it acquired operations in new markets including Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe. Engen’s Kenya operations is the ninth country included in the deal.