KUALA LUMPUR: After nearly three decades of ownership, Petroliam Nasional Bhd (Petronas) is selling its entire 74 per cent stake in Engen Ltd to Vivo Energy, one of the largest African fuel retail operators and part of multinational energy company Vitol.
Engen operates the largest retail footprint with around 1,300 service stations across seven countries in sub-Saharan Africa and the Indian Ocean islands.
The national oil company did not disclose how much Vito was paying for the stake.
Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik said for almost three decades, Engen had been an important part of the group's business portfolio.
Recognising the company's long and illustrious 140-year history, Tengku Muhammad Taufik said Engen's strength and capabilities had continued to grow as an award-winning, customer-focused market leader in South Africa.
"While Petronas' decision to step back and reshape its portfolio is driven by evolving business priorities, we fully appreciate Engen's potential and acknowledge that this is a necessary move forward to further accelerate its growth.
"With a strong foundation in place, we believe Vivo Energy will not only maintain sound operations for Engen, but also help steer the company through its next phase of growth," he said.
Petronas first acquired shares in Engen in 1996 and became its majority shareholder in 1998.
The Phembani Group, Petronas' long standing partner in Africa and Engen's Broad Based Black Economic Empowerment (B BBEE) shareholder, will remain a shareholder in Engen alongside Vivo Energy.
Engen will continue to execute on its strategy and remains focused on maintaining operational and commercial excellence both during the pre-completion period, and under the stewardship of Vivo Energy post-completion of this transaction.
Petronas was advised by Morgan Stanley and Rothschild & Co.