(Alliance News) - Vivo Energy PLC on Thursday accepted a USD2.3 billion takeover offer from energy and commodity trading company Vitol Group, its largest shareholder.
Vivo, a pan-African retailer of Shell and Engen-branded fuels and lubricants, will recommend a USD1.85 per share offer from Vitol Investment Partnership. The offer price includes planned dividends - a USD0.04 final dividend for 2021 and a USD0.02 special dividend for 2022.
The offer equates to 139 pence per share. In sterling terms, it is roughly a 25% premium to its closing price of 111.40p on Wednesday.
Vivo Energy shares were 20% higher at 133.80p each in London on Thursday morning, giving it a market capitalisation of GBP1.70 billion. In Johannesburg, the stock was up 21% at ZAR28.01.
Vitol was founded in Rotterdam, Netherlands in 1966 and has headquarters in Geneva, Switzerland. It has a 36% stake in Vivo.
Vitol noted it has been in talks with one of Vivo's founding shareholders, Helios. This was over a potential deal to acquire the 27% stake in Vivo which Helios holds.
"Due to the existing Vitol shareholders' 36.0% shareholding, the agreement with Helios meant that there was a risk that minority shareholders may become disadvantaged through acceptance of an offer that they might otherwise not have wanted to accept, in order not to remain a shareholder in an illiquid position. As a result, the independent Vivo directors engaged with BidCo to negotiate a fair value for the minority Vivo shareholders," Vivo explained.
Only a couple of weeks back, Vivo had appointed a TotalEnergies SE executive as its new chief executive officer. Stanislas Mittelman, currently senior vice president for Africa Marketing & Services at the French oil major, had been expected to take up the role in March of next year. He is replacing Christian Chammas, who is stepping down from the role after ten years since 2012.
Vivo on Thursday said Vitol is supportive of Mittelman's appointment and it intends to keep Vivo management in place.
In 2020, Vitol generated revenue of over USD140 billion. It traded over 339 million tonnes of crude oil and products.
"Today, Vitol owns a significant number of assets across the energy value chain worldwide, including more than 480,000 barrels per day of refining capacity and 100 million barrels of terminalling and storage assets, and owns or markets to approximately 6,500 retail service stations," Vitol said.
Vitol noted that fuel distribution in Africa is its core activity, and Vivo will be able to benefit from its expertise.
By Eric Cunha; ericcunha@alliancenews.com
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