KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will be expanding its footprint to nine new countries via its wholly-owned South African unit Engen Holdings (Pty) Ltd.
This followed a deal worth US$256 million (RM1 billion) between Engen and Vivo Energy Holding BV, jointly-owned by Geneva-based Vitol SA and Africa-focused private investment firm Helios Investment Partners, to combine some of their African fuel-retail assets, Bloomberg reported on Monday.
The deal will give Petronas access to 2,100 service stations in 24 African markets.
According to Bloomberg, combining their operations will give Vivo Energy access to 300 Engen-branded outlets in countries including the Democratic Republic of Congo, Zimbabwe, Zambia, Gabon, Rwanda, Mozambique, Tanzania, Reunion, Malawi and Kenya, where it already has its own operations.
“Engen will retain its interest in Engen Petroleum Ltd (its operations and refinery in South Africa) and its businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho are also not part of this transaction,” said Engen and Vivo Energy in a joint statement on Monday.
The oil refinery that has the capacity to process 120,000 barrels of oil a day.
It was learnt that the deal would represent 20 per cent of Engen’s equity value.
Vivo Energy, which operates more than 1,800 fuel stations across 15 African countries under the Royal Dutch Shell Plc brand, will be exchanging some of its shares for stock in Engen.
“Engen is excited to enter into this strategic undertaking with Vivo Energy, which is aligned with our growth aspirations in Africa,” said Engen managing director and chief executive officer Yusa Hassan.
“We will seek to build on each other’s strengths from this collaboration for the benefit of our customers,” he said.
Petronas bought Engen in 1998 in a deal that valued the company at about US$700 million (RM2.8 billion) before selling a stake to Phembani.
If the deal with Vivo goes through, Phembani will also take a stake in the Dutch company and Vivo could then begin trading its shares on the London Stock Exchange next year.