Vivo Energy plc completes transaction with Engen Holdings

Vivo Energy plc (“Vivo Energy”) is pleased to announce the completion of the transaction with Engen Holdings (Pty) Limited (“Engen” or “EHL”), previously announced on 18 September 2018. The transaction adds operations in eight new countries and 230 Engen-branded service stations to Vivo Energy’s network, taking its total presence to over 2,000 service stations, across 23 African markets.

The new markets for Vivo Energy are Gabon, Malawi, Mozambique, Reunion, Rwanda, Tanzania, Zambia and Zimbabwe. Engen’s Kenya operations (where Vivo Energy already operates) is the ninth country included in the transaction.

As per previous announcements, consideration for the transaction comprises an issue by Vivo Energy of 63.2 million new shares and US$62.1 million in cash. The cash element of the consideration has been funded by a draw down on Vivo Energy’s multi-currency facility. Following the share issuance Engen will hold a circa 5.0% shareholding in Vivo Energy.

Commenting on the transaction, Christian Chammas, CEO, Vivo Energy said: “Today’s announcement opens an important new chapter for Vivo Energy, welcoming around 300 new employees, adding eight new countries to our network, and increasing our target market by almost 160 million to around 36% of the African continent.”

On the basis of information provided by Engen, Vivo Energy believes that the 2018 financial performance of the target Group will be similar to 2017. Increased fuel volumes, driven by the commercial segment, are expected to have been offset by lower margins. Vivo Energy will provide full year guidance for 2019, incorporating the 10 months of contribution of the new Engen markets, with its full year results announcement on 6 March 2019.

Yusa’ Hassan, Managing Director and CEO of Engen commented: “Engen is excited to embark on this growth journey with Vivo Energy, and add another strong and well respected brand to the Vivo Energy Group.”

Following the transaction, EHL retains its interest in Engen Petroleum Limited (its South Africa business and refinery) and its businesses in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho, which are not part of the transaction. Engen’s business in the Democratic Republic of Congo (DRC) remains under evaluation by Vivo Energy, pending any agreement between Engen and the DRC Government regarding the transfer of the subsidiary holding Engen’s DRC interests.

Chammas concluded: “In Vivo Energy’s first seven years we invested to grow our business, increasing our service station network and adding new and refurbished convenience retail and quick service restaurant offers. We have an opportunity to replicate this successful business model to drive growth and profitability in our new markets. We must seize this in order to benefit all our customers, deliver value for our shareholders, and move closer to achieving our goal of becoming Africa’s most respected energy business.”

Ends Notes to editors:

Media contacts: Vivo Energy plc Rob Foyle, Head of Communications +44 7715 036 407 rob.foyle@vivoenergy.com

Engen Holdings (Pty) Limited Gavin Smith, External Communications Manager +27 82 379 1700 gavin.smith@engenoil.com

Tulchan Communications Martin Robinson, Suniti Chauhan +44 20 7353 4200 vivoenergy@tulchangroup.com

About Vivo Energy:

Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has a network of over 2,000 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and other non-fuel services (e.g. oil change and car wash). It provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range of sectors including marine, mining, construction, power, transport and manufacturing. Jet fuel is sold to customers under the Vitol Aviation brand.

The Company employs around 2,700 people and has access to over 1,000,000 cubic metres of fuel storage capacity. The Group’s joint venture, Shell and Vivo Lubricants B.V., sources, blends, packages and supplies Shell-branded lubricants and has blending capacity per annum of around 158,000 metric tonnes at plants in six countries (Ghana, Guinea, Côte d’Ivoire, Kenya, Morocco and Tunisia).

For more information about Vivo Energy please visit www.vivoenergy.com

About Engen:

Engen is an oil company focusing on the downstream refined petroleum products market and related businesses, with a presence across Sub Saharan Africa and the Indian Ocean Islands. The company’s core functions are the refining of crude oil, the marketing of primary refined petroleum products and the provision of convenience services via an extensive retail network.

Engen is a member of the PETRONAS Group.

Forward-looking statements

This announcement includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the Directors’ current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as: “believe”, “expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned”, “anticipates” or “targets” or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other things, the future results of operations, financial condition, prospects, growth, strategies of the Group and the industry in which it operates.

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements.

Such forward-looking statements contained in this report speak only as of the date of this report. The Company and the Directors expressly disclaim any obligation or undertaking to update these forward-looking statements contained in the document to reflect any change in their expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law.