Vivo Energy, a pan-African fuels and lubricants supplier partly owned by Nigerian businessman Temitope Lawani, has acquired Engen Limited from Malaysian state-owned oil major Petronas. The agreement, announced in February 2023, sees Vivo Energy absorb Engen by acquiring Petronas’ 74% ownership.
The united firm has a large footprint throughout Africa. With approximately 3,900 service stations and storage capacity of 2.1 billion liters, the expanded Vivo Energy will be a significant player in 28 markets. This move establishes a pan-African energy champion poised for future growth.
The Phembani Group, Engen’s longtime Broad-Based Black Economic Empowerment (B-BBEE) stakeholder, will continue to be involved following Vivo Energy’s acquisition of the company.
Phembani will keep a 21% stake in Engen South Africa, with an additional 5% employee share ownership scheme to be developed. This equates to a cumulative 26 percent ownership by historically disadvantaged individuals (HDIs) in South African businesses, promoting economic inclusion.
Vivo Energy supports a “business as usual” strategy for stakeholders, with an emphasis on creating value for consumers, partners, and staff. The larger group will maintain its dedication to customer satisfaction while investing heavily in Engen’s South African operations to ensure a modern and efficient business that benefits the local community.
Furthermore, Vivo has announced significant capital investment in renewable solar power generation projects, coinciding with South Africa’s energy shift and demonstrating its commitment to a sustainable future. The agreement strengthens Vivo Energy’s dominance in the African petroleum industry.
Temitope Lawani, the co-founder and managing partner of Helios Investment Partners, Africa’s largest private equity firm, owns a 1.55% direct ownership in Vivo Energy. Lawani additionally has an extra 26.27 percent indirect exposure from Helios’ investment in Vivo. This collaboration expands Vivo’s presence in Africa’s energy sector.
Vivo Energy Chairman Chris Bake praised Petronas for its leadership of Engen, recognizing its role in transforming Engen into a valued corporate citizen. Bake finished by underlining the united group’s potential as Africa’s foremost energy firm.
