Petronas president Datuk Tengku Muhammad Taufik Tengku Aziz said although Petronas’ decision to step back and reshape its portfolio is driven by evolving business priorities, the group fully appreciated Engen’s potential and acknowledged that this is a necessary move forward to further accelerate its growth. – AFP PHOTO
KUALA LUMPUR (Feb 9): Petroliam Nasional Bhd (Petronas) has reached an agreement to sell its entire 74 per cent interest in Engen Ltd to Vivo Energy, one of the largest African fuel retail operator and part of multinational energy company Vitol.
“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,” president and group chief executive officer Datuk Tengku Muhammad Taufik Tengku Aziz said in a statement.
He said although Petronas’ decision to step back and reshape its portfolio is driven by evolving business priorities, the group fully appreciated Engen’s potential and acknowledged that this is a necessary move forward to further accelerate its growth.
Tengku Muhammad Taufik said with a strong foundation in place, Petronas believed Vivo Energy would not only maintain sound operations for Engen but also help steer the company through its next phase of growth.
“It would be remiss of Petronas not to place on record our heartfelt gratitude to our Engen colleagues whose unwavering support has enabled us to achieve many milestones together, so we do hope to see them progress in their next phase of growth,” he said.
According to the statement, Petronas first acquired shares in Engen in 1996 and became its majority shareholder in 1998.
It said Engen’s primary business is in the marketing of petroleum, lubricants and functional fluids, chemicals and retail convenience services.
The statement said the company currently operated the largest retail footprint with around 1,300 service stations across seven countries in sub-Saharan Africa and the Indian Ocean Islands.
It said the Phembani Group, Petronas’ long-standing partner in Africa, and Engen’s Broad-Based Black Economic Empowerment (B-BBEE) shareholder would remain a shareholder in Engen alongside Vivo Energy.
It added that Engen would continue to execute its strategy and remain 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 and Co and the transaction is subject to customary conditions precedent including regulatory approvals. – Bernama