British energy company invests in ENGEN
Written by Millennium on March 4, 2019
BUUMBA CHIMBULU writes
VIVO Energy, a British fuel and lubricants marketing company, has launched operations in Zambia.
The company has partnered with Engen Holdings, which already runs filling stations across Zambia.
Vivo Energy chief executive officer, Christian Chammas, said that the partnership with Engen Holdings, is part of its expansion programme to Africa, and raises its total markets to 23, from 15 countries.
The transaction also adds a further 230 Engen-branded service stations to Vivo Energy’s network, to bring its total presence to over 2,000 service stations in
23 African countries.
Mr. Chammas said that the new transaction comprises an issue of 63.2 million new shares and US$62.1 million in cash by his company, with the cash component funded by a draw down on its multi-currency facility.
Engen will hold a circa 5.0 percent shareholding in Vivo Energy, according to Mr. Chammas.
“Today’s announcement opens an important new chapter for Vivo Energy, welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36 percent of the African continent,” he said.
VIVO Energy’s new markets include Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe.
And Mr. Yusa’ Hassan, the managing director and chief executive officer of Engen Holdings, said, “Engen is excited to embark on this growth journey with Vivo Energy, and add another strong and well respected brand to the Vivo Energy Group.”