The combined Vivo Energy Group now has more than 3,900 fuel stations and over two billion liters of storage capacity across 28 African markets.
The Phembani Group, a long-standing B-BBEE shareholder of Engen, maintains a strategic link with Engen and will remain invested as a 21% shareholder in the South African company. A new 5% employee shareholding program is being implemented and will allow historically disadvantaged individuals to own 26% of Engen South Africa.
Since the transaction was announced in February 2023, all stakeholders have worked to ensure regulatory approvals were obtained and preconditions in the seven markets in which Engen operates were met. These are now obtained, under conditions.
In a joint announcement, Stan Mittelman, CEO of Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, said: “We are delighted to complete the transaction and will now work together to bring the best of Engen and Vivo Energy, thus giving the new group the means to achieve its ambitions for growth and success in the years to come.”
The new Vivo Energy group will only make changes that create value, while favoring a “business as usual” approach preserving the stability of the relationship with customers, partners, suppliers and employees.
Stan Mittelman and Seelan Naidoo added: “As part of the transaction, Vivo Energy has committed to investing significant amounts in South Africa in order to maintain and grow the operations of Engen, a modern and efficient company, serving of the South African population. We are also committed to investing massively in renewable solar energy production projects, thereby contributing to the transformation of the economy and a just energy transition for the country.”
Phuthuma Nhleko, Chairman and co-founder of the Phembani Group, said: “As a shareholder of Engen since 1999, we are pleased to continue our commitment, partnering with Vivo Energy in a strategic partnership to the next phase of growth for Engen, a key player in the South African economy.”
Chris Bake, Chairman of Vivo Energy, concluded: “I would like to thank PETRONAS for its stewardship of Engen over the past 25 years. Together with the Phembani Group, they have made Engen a valuable corporate citizen. The combination of Vivo Energy and Engen to create a pan-African champion not only benefits customers in South Africa and across the continent, but also allows the new group to realize its vision: to be the leading and most respected company in the energy sector in Africa.
