1st Mar 2019 07:57
LONDON (Alliance News) - Vivo Energy PLC said on Friday it has completed its acquisition of Engen Holdings (Pty) Ltd's operations in a number of African countries.
In December 2017, Vivo agreed to buy the operations of Engen in ten African nations: the Democratic Republic of Congo, Gabon, Kenya, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia, and Zimbabwe.
Then, in September, Vivo and Engen confirmed they had restructured the deal, worth USD204 million, to initially complete with all but the DRC operations in March, after it received regulatory approval for all operations except for the DRC.
Vivo on Friday said the deal will add operations in eight new countries, with Vivo already operating in Kenya, and will bring 230 Engen-branded service stations into Vivo Energy's network.
This will take Vivo's total presence to over 2,000 service stations across 23 African markets.
"Engen's business in the DRC remains under evaluation by Vivo Energy, pending any agreement between Engen and the DRC government regarding the transfer of the subsidiary holding Engen's DRC interests," Vivo commented on Friday.
As previously announced, the consideration for the acquisition comprises USD62.1 million in cash and the issue of 63.2 million Vivo shares at its IPO offer price of 165p each.
On Thursday, shares in Vivo closed at 127.3p in London. In Johannesburg, the stock was untraded at ZAR24.00 on Friday.
The company added it will provide full-year guidance for 2019, incorporating the 10 months of the Engen acquisition, alongside its full-year results this coming Wednesday.
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