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Vitol to acquire rest of Vivo Energy stake it does not own

Vitol to acquire rest of Vivo Energy stake it does not own
Photo courtesy of Vivo Energy

Vivo Energy, the company that distributes and markets Shell- and Engen-branded fuels and lubricants to retail and commercial customers in Africa, is being acquired by a fund backed by Vitol Group. Vitol currently owns 36% of Vivo. 

Bidco, a newly formed company which is wholly owned and an indirect subsidiary of Vitol Investment Partnership II Limited, an investment vehicle of  the Vitol Group, announced that they have reached agreement  on the terms of a recommended cash offer for the shares not currently held by Vitol. The transaction, which is valued at USD2.3 billion at USD1.85 in cash for each Vivo share, is expected to occur on or prior to August 2022.

Vivo Energy was established in 2011 and operates in 23 countries across North, West, East and Southern Africa, with a network of more than 2,400 service stations. Vivo Energy also exports lubricants to a number of other African countries.

In 2018, Vitol sold shares in Vivo Energy in what was one of the biggest initial public offerings on the London Stock Exchange that year. 

The offer follows an unsolicited non-binding proposal from Vitol for a possible cash offer at USD1.55 per Vivo share on February 2, 2021, which was  unanimously rejected by the independent Vivo directors on February 11, 2021. 

The Vitol Group has engaged with Helios, another founding shareholder of Vivo, on various  occasions over the past few years in relation to acquiring the Helios entitiesโ€™ 27.1%  interest in Vivo. Helios Investment Partners is the largest Africa-focused private investment firm, headquartered in London, UK.

Vivo received a  further proposal in September 2021, informing it that Vitol had agreed on a non-binding basis  to acquire Heliosโ€™ 27.1% shareholding in Vivo.  

Following a series of negotiations, BidCo and Helios agreed on a price at which  both parties would be willing to transact at a purchase price of USD1.79 per Vivo share.