Nigerian tycoon Temitope Lawani-linked Vivo Energy completes acquisition of Engen from Petrona

Mfonobong Nsehe -

Key points:

  • Vivo Energy finalizes Engen acquisition, creating a massive network of 3,900 stations and 2.1 billion liters storage across 28 African markets.
  • Merger strengthens B-BBEE in South Africa; Phembani retains 21% stake, with a new 5% employee program for a combined 26% ownership by historically disadvantaged persons.
  • Nigerian businessman Temitope Lawani holds a significant stake in Vivo Energy (1.55% direct, 26.27% indirect).

Vivo Energy, a pan-African fuels and lubricants retailer partly owned by Nigerian businessman Temitope Lawani, has finalized its acquisition of Engen Limited from Malaysia’s state-owned oil firm Petronas. The deal, announced in February 2023, sees Vivo Energy absorb Engen through the acquisition of Petronas’ 74 percent stake.

The combined entity boasts a massive footprint across Africa. With over 3,900 service stations and storage exceeding 2.1 billion liters, the enlarged Vivo Energy will be a dominant player in 28 markets. This move creates a pan-African energy champion, well-positioned for future growth.

Engen deal strengthens B-BBEE ownership

The acquisition of Engen by Vivo Energy secures continued involvement from the Phembani Group, Engen’s longstanding Broad-Based Black Economic Empowerment (B-BBEE) shareholder.

Phembani will retain a 21 percent stake in Engen South Africa, with an additional 5 percent employee share ownership program to be established. This translates to a combined 26 percent ownership by historically disadvantaged persons (HDIs) in the South African business, furthering economic inclusion.

Vivo Energy prioritizes a “business as usual” approach for stakeholders, focusing on value creation for customers, partners, and employees. The enlarged group will maintain its commitment to customer satisfaction while significantly investing in Engen’s South African operations to ensure a modern and efficient business that benefits the local community.

Furthermore, Vivo has pledged substantial capital expenditure for renewable solar power generation projects, aligning with South Africa’s energy transition and signaling its commitment to a sustainable future. The deal strengthens Vivo Energy’s dominant position in the African petroleum market.

Lawani holds stake in Vivo Energy as Engen merger creates pan-African giant

Temitope Lawani, co-founder and managing partner of Helios Investment Partners, the largest Africa-focused private equity firm, holds a 1.55 percent direct stake in Vivo Energy. Lawani also has an additional 26.27 percent indirect exposure through Helios’ investment in Vivo. This partnership strengthens Vivo’s position in Africa’s energy sector.

Vivo Energy Chairman Chris Bake thanked Petronas for its stewardship of Engen, acknowledging its role in shaping Engen into a respected corporate citizen. Bake concluded by emphasizing the combined group’s potential to become Africa’s leading energy company.

The merger of Vivo Energy and Engen marks a significant development in the African energy sector. The newly formed entity boasts an extensive network of over 3,900 service stations and more than two billion liters of storage capacity across 28 African markets.

This positions it to leverage its resources and drive growth and innovation across the continent. With a focus on sustainability and economic empowerment, the pan-African champion is well-equipped to navigate the evolving energy landscape.