Vitol to acquire African fuel distributor Vivo Energy
Geneva-based commodities trading company Vitol has agreed to acquire Africa-focused fuel retailer Vivo Energy in a deal worth at about $2.3bn.
Under the terms of the agreement, Vitol will pay $1.85 (139 pence) to buy the remaining stake that it doesn’t currently own in the fuel distributor.
The takeover offer is being made by BidCo, a company indirectly owned by Vitol Investment Partnership II, which is managed by Vitol executives. VIP II was earlier used to buy assets including refineries and fuel stations in Australia.
Vitol stated that fuels distribution and marketing in Africa is a core activity for the company.
Upon completion of the transaction, BidCo and the Vitol Group are expected to continue support Vivo’s management and its strategy.
Vitol Africa and VIP Africa II, which are concert parties of BidCo, have been founding shareholders of Vivo and currently own a 36% in it.
Vitol origination head Chris Bake said: “Since we founded Vivo with Helios and Shell, we have believed in the business’ potential and we are excited to have it within the Vitol family, as a pillar of our strategy in Africa. We are pleased that both Helios and the Independent Vivo Directors support our proposal.
“We very much look forward to working with management on this next phase of growth and we thank Helios for their support and collaboration over the last ten years.”
With operations in 23 countries across north, west, east and southern Africa, Vivo distributes and markets Shell and Engen branded fuels and lubricants to retail and commercial customers.
It has a network of more than 2,400 service stations.
The company is also engaged in exporting lubricants to a number of other African countries.
Its retail offering includes fuels, lubricants, card services, shops and other non-fuel services. It also offers fuels and lubricants to its business customers across a range of sectors including mining, construction, transport and manufacturing.
For the year ended 31 December 2020, Vivo reported a revenue of $6.9bn and a profit before tax of US$175m.
Source: NS Energy