Petronas Disposes Entire Stake In South African Fuel Retailer, Engen To Vivo Energy

Petronas has reached an agreement to sell its entire 74 percent interest in Engen Limited to Vivo Energy, one of the largest African fuel retail operators and part of multinational energy company Vitol.

President and Group Chief Executive Officer Datuk Tengku Muhammad Taufik said, “For almost three decades, Engen has been an important part of the Group’s business portfolio. Recognising the company’s long and illustrious 140-year history, Engen’s strength and capabilities have continued to grow as an award-winning, customer-focused market leader in South Africa.

The national oil giant first acquired shares in Engen in 1996 and became its majority shareholder in 1998. Engen’s primary business is in the marketing of petroleum, lubricants and functional fluids, chemicals, and retail convenience services. It currently operates the largest retail footprint with around 1,300 service stations across seven countries in sub-Saharan Africa and the Indian Ocean Islands.

The Phembani Group, PETRONAS’ long standing partner in Africa and Engen’s Broad-Based Black Economic Empowerment 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 . The transaction is subject to customary conditions precedent including regulatory approvals.

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