MEDIA RELEASE
14 FEBRUARY 2023
RMB’s long-term partnership with Vivo Energy cements role as joint financial adviser on Engen acquisition
RMB’s long-standing relationship with Vivo Energy, has led to the bank’s appointment as joint financial adviser to Vivo Energy, on the acquisition of a majority shareholding in Engen from Petronas. This is the largest transaction announced in South Africa this year.
The resulting acquisition will combine Vivo Energy’s existing footprint in East and Southern Africa with Engen’s leading position in South Africa, creating one of Africa’s largest energy distribution companies.
The Phembani Group, Petronas’ long-standing partner in Africa and Engen’s B-BBEE shareholder, will remain invested as a 21% shareholder in the South African business. In addition, a 5% employee share ownership programme (ESOP) will be implemented, bringing ownership in Engen South Africa by historically disadvantaged South Africans to a total of 26%.
“This transaction has been complex given the cross-border nature and associated regulatory matters. With multiple local and international parties being involved, we needed to agree terms within a short timeframe. Our agility, commitment, clever thinking and deep understanding of the various businesses combined with our partnership with the Vivo Energy team, resulted in us successfully navigating this strategically important and complex transaction,” says Krishna Nagar, Co-head of Corporate Finance for RMB.
This acquisition signals a major vote confidence in the South African economy and the fuel distribution business, at a time when many companies are facing challenges.
“We’re proud to partner on this initial investment and the growth of the business over time,” concludes Nagar.
The transaction is currently pending regulatory approvals.
End
Contact:
Kate Kelly l RMB l kate.kelly@rmb.co.za
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