SEPTEMBER 20

Inside Sept 20 2018 .qxp_Layout 1 9/19/18 9:59 PM Page 7
19TH
SEPTEMBER
2018
WEDNESDAY
CURRENCY PARIS CODE BUYING SELLING
US Dollar USDGHS 4.7583 4.7631
RATES Pound Sterling GBPGHS
6.2272
6.2339
Euro
GBPGHS
5.5501
5.5551
10
DAILY HERITAGE THURSDAY, SEPTEMBER 20, 2018
WWW.DAILYHERITAGE.COM.GH
Vivo Energy to operate in
23 African countries
VIVO ENERGY Plc, distributor
of petroleum
products, has announced
its agreement
with Engen Holdings
(Pty) Limited (“Engen”
or “EHL”) to restructure the acquisition
of Engen International Holdings
(Mauritius) Limited (“EIHL”) by Vivo
Energy’s subsidiary, Vivo Energy Investments
B.V.
The restructured transaction is
now unconditional, aside from customary
closing conditions, including
material adverse change clauses.
Vivo says all required regulatory
and competition authorities’ approvals
have been received for the transfer of
Engen’s international operations in
nine sub-Saharan countries.
By the restructured agreement,
first announced on December, 4 2017,
the acquisition will proceed in all the
countries other than the Democratic
Republic of Congo.
At this stage Engen says it is continuing
its discussions with the Government
of the Democratic Republic
of Congo regarding the transfer of
the subsidiary holding Engen’s DRCrelated
interests, while Vivo Energy
continues to evaluate the potential acquisition
and negotiations with Engen.
The restructured transaction,
scheduled to complete on March 1,
next year, will add operations in eight
new countries and over 225 Engenbranded
service stations to Vivo Energy’s
network, taking its total
presence to over 2,000 service stations,
across 23 African markets.
According to officials of Vivo, the
new markets for Vivo Energy are
Gabon, Malawi, Mozambique, Reunion,
Rwanda, Tanzania, Zambia and
Zimbabwe, and that Engen’s Kenya
operation (where Vivo Energy already
operates) is the ninth country included
in the transaction.
As per the agreement on December
4, 2017and as a result of the restructure
of the transaction,
consideration in respect of the transfer
of EIHL is US$203.9 million,
comprising an issue by Vivo Energy of
63.2 million new shares valued at Vivo
Energy’s IPO Offer Price of 165
pence per share and US$62.1 million
in cash, resulting in EHL holding a
circa 5.0% shareholding in Vivo Energy.
The cash element of the consideration
will be funded by a drawdown
on Vivo Energy’s multi-currency facility,
established in May 2018.
A release from Vivo states that for
the year ended December 31, 2017,
unaudited management adjusted
EBITDA for the nine entities involved
in the acquisition on March 1, 2019
was approximately US$33 million, out
of which US$26 million is attributable,
with attributable net cash on hand of
approximately US$48 million.
Officials say Vivo Energy’s belief
in the potential of the businesses
being transferred and the objective to
achieve double digit volume and
EBITDA growth rates over the
medium term, set out as part of the
IPO prospectus, remains unchanged.
The release says Vivo Energy will
provide updated guidance for the nine
Engen countries to the market, reflecting
the changes to the transaction,
with the 2018 full year results announcement
in March 2019, following
completion of the transaction.
It adds that Engen Holdings (Pty)
Limited retains its interest in Engen
Petroleum Limited (its South Africa
business and refinery) and Engen’s
businesses in Mauritius, Botswana,
Ghana, Namibia, Swaziland and
Lesotho, which are not part of the
transaction.
Mr Christian Chammas, Chief Executive
Officer, Vivo Energy, said,
“Today’s announcement opens an important
new chapter for Vivo Energy
and we look forward to welcoming
around 350 new employees, adding
eight new countries to our network,
and increasing our target market by
nearly 150 million people to around
35% of the African population. Importantly,
our existing business remains
on track to achieve our full year
guidance and we continue to invest in
and grow our existing operations.
“In Vivo Energy’s first seven years
we invested to grow our business, increasing
our network and adding new
and refurbished shops and quick service
restaurant offers. We have an opportunity
to replicate this successful
business model to drive growth and
profitability in our new markets and
look forward to updating the market
in the New Year on the scale of the
opportunity ahead of us. We must
seize this in order to deliver value for
our shareholders, and move closer to
achieving our goal of becoming
Africa’s most respected energy business.”
Mr Yusa Hassan, Managing Director
and CEO of Engen, commented
that “Engen is pleased with this transaction,
which will enable the parties to
proceed to completion on March 1,
2019. It aligns with our growth aspirations
in Africa. We look forward to becoming
a Vivo Energy shareholder,
and adding another strong and well respected
brand to the Vivo Energy
group.”
Nissan to establish assembling plant in Ghana
•Government is expected to conclude talkes with Nissan to establish
assembly plant in Ghana
GOVERNMENT IS expecting to
conclude talks with Japanese car
maker Nissan to establish an assembling
plant in the country, the
Trade and Industry Minister, Alan
Kyerematen, has disclosed.
According to him, the country’s
announcement of its zeal to play a
significant role in the automotive
industry has attracted a number of
offers from players in the industry
across the world.
“Major companies basically,
more or less, are putting more
pressure on us to get started…
Nissan is far advanced in terms of
discussions,” the trade minister
made this known during the
Ghana Industrial Summit and Exhibition
organised by the Association
of Ghana Industries.
Mr Kyerematen added: “These
are all opportunities for the private
sector to engage with potential investors.
And it is our hope that you
find partners to grow your sector.”
The announcement of Nissan
planning to establish base in
Ghana comes on the back of similar
announcements by VW and
Sinotruk. In late August, German
Chancellor Angela Merkel announced
that VW, the German car
maker, is set to establish an assembling
plant in Ghana.
Addressing a joint press conference
with President Akufo-Addo,
at the foyer of the Jubilee House,
Chancellor Merkel said her administration
had watched keenly the
decision of the Akufo-Addo administration
to propel Ghana beyond
aid.
She said her country is poised
to collaborate with Ghana to make
available to Ghana the best practices
that have helped Germany to
industrialize.
She said the assembling would
create a considerable number of
jobs for Ghanaians in the car manufacturing
sector.
Contributing to the development,
President Akufo-Addo said
the Ghanaian economy is delighted
to welcome the VW vehicle plant
into the country.
He pledged that the government
would give the investor community
of Germany every
necessary assistance that they
would require.
Meanwhile, Sinotruk International,
China’s first heavy-duty
truck manufacturer, has signed an
agreement with the Government
of Ghana to establish an assembly
plant in Ghana, to serve both
Ghanaian and West African markets.
The assembly plant in Ghana,
when established, will initially have
the capacity to assemble some
1,500 trucks per year for sale in
Ghana and the rest of West Africa.