Vitol snaps up Vivo Energy in $2.3bn acquisition
Commodities trader Vitol has snapped up London-listed Vivo Energy (Vivo) in a $2.3bn deal.
The Dutch company will take full control of the UK-based energy firm, which is listed on the FTSE 250 and has a network of 2,330 service stations across Africa.
Vivo is responsible for distributing Shell and Engen branded fuels on the continent.
The acquisition will significantly boost Vitol’s portfolio of approximately 6,600 retail sites on four continents.
The agreement consists of cash and shareholder pay-outs.
The UK company’s shareholders will receive $1.79 in cash for each share they hold, and six cents as an interim plus special dividend.
Following the announcement, shares in Vivo jumped as much as 21 per cent to 134.8 pence on the FTSE 250.
This is more or less in line with the total offer, which equates to 139 pence per share.
Vivo was founded after Shell divested some of its downstream business in 2011.
Vitol, Helios and Shell operated Vivo as a joint venture before the two top shareholders bought out Shell for $250 million in 2016.
It has performed strongly amid the pandemic, with shares having risen more than 50 per cent so far this year.
Vitol is already the top investor in Vivo with a 36 per cent stake.
Thursday’s accepted offer follows a lower proposal in February, which was rebuffed by company’s board.
The board of Vivo plan to unanimously recommend the new and improved deal to shareholders.
Vitol is also buying out Helios, the second biggest shareholder, as part of its takeover.
Helios has a 27 per cent stake, with the $1.79 per share price representing a 25 per cent premium to the stock’s close on Wednesday.
Vitol’s head of origination Chris Bake said: “Since we founded Vivo with Helios and Shell, we have believed in the business’ potential and we are excited to have it within the Vitol family, as a pillar of our strategy in Africa.”
Vivo was up 18.49 per cent, trading at 132p on the FTSE 250 at close of play.