Overview:
The Phembani Group, Engen's long-standing B-BBEE shareholder, will continue its strategic association with Engen, maintaining a 21% stake in the South African business.
Vivo Energy and Engen have announced the successful completion of their transaction, combining their businesses to create a pan-African energy champion. The merged entity, Vivo Energy Group, now boasts an extensive network of over 3,900 service stations and more than two billion liters of storage capacity across 28 African markets.
This strategic partnership brings together two industry leaders, leveraging their collective expertise and resources to drive growth and success in the region. The Phembani Group, Engen’s long-standing B-BBEE shareholder, will continue its strategic association with Engen, maintaining a 21% stake in the South African business. Additionally, a new 5% employee share ownership program has been established, ensuring that Engen South Africa is 26% owned by historically disadvantaged persons.
Stan Mittelman, CEO of Vivo Energy Group, and Seelan Naidoo, Managing Director and CEO of Engen, jointly stated, “We are thrilled to conclude this transaction, combining the strengths of both organizations to create a pan-African energy leader. Our focus now is on delivering value to our customers, partners, and stakeholders, while driving growth and success in the region.”
The enlarged Vivo Energy Group has committed to significant capital expenditure investments in South Africa, ensuring a modern and efficient business that benefits the local population. Furthermore, the company has pledged major investments in renewable solar power generation projects, supporting a just energy transition and contributing to the country’s economic transformation.
Phuthuma Nhleko, Chairman and Co-founder of Phembani Group, expressed enthusiasm about continuing their involvement in Engen’s growth, while Chris Bake, Chairman of Vivo Energy, acknowledged PETRONAS’ stewardship of Engen and welcomed the combination of Vivo Energy and Engen, positioning the new Group for success in achieving its vision to be Africa’s leading and most respected energy business.