Malaysian state energy company Petronas (PETR.UL) is selling its 74% stake in South Africa’s largest gas station chain Engen to Vivo Energy, the firms said on Thursday, a deal that will create one of Africa’s largest energy distribution companies.
Without naming the price of the deal, Engen and Vivo, which is owned by global energy trader Vitol, said the combined group will have over 3,900 service stations and more than two billion litres of storage capacity across 27 African countries.
Engen’s second-largest shareholder, South African investment firm Phembani, will remain invested as a 21% shareholder in the South African business, they said.
The transaction is currently pending regulatory approvals. Rand Merchant Bank and Standard Bank advised Vivo Energy, while Morgan Stanley and Rothschild & Co are advisors to Petronas on the deal, the companies said.
Petronas has been exploring options for its South African business for some years now as it reviewed its overall portfolio.
Engen has around 1,300 service stations across seven African countries, while Vivo has more than 2,600 service stations across 23 African countries.
Source: Reuters.com