State energy business of Malaysia, Petronas, is selling its complete 74% stake in the largest gas station chain in South Africa, Engen, to the petroleum company Vivo Energy, said the two businesses. The transaction would result in the creation of one of Africa’s major energy distribution corporations.
Engen and Vivo, which is owned by international energy trader Vitol, said the merged group will have more than 3,900 service stations and more than two billion liters of storage capacity across 27 African countries, without disclosing the deal’s price.
According to them, Phembani, the second-largest shareholder in Engen and a South African investment company, will continue to have a 21% stake in the South African company.
Regulatory permissions are now waiting for the acquisition. According to the companies, Petronas received advice on the transaction from Morgan Stanley and Rothschild & Co., while Rand Merchant Bank and Standard Bank assisted Vivo Energy.
In the course of reviewing its entire portfolio, Petronas has been looking into options for its South African operations for some time.
While Vivo has more than 2,600 service stations spread over 23 African countries, Engen has roughly 1,300 in seven African nations.
