RCS - Vivo Energy Limited - Vivo Energy to acquire the Somagaz group

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20/10/2023 14:00

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RNS Number : 8278Q  Vivo Energy Limited  20 October 2023

Vivo Energy to acquire the Somagaz group, the LPG market leader in Mayotte,
pursuing its growth strategy in Africa and the Indian Ocean

 

Mamoudzou, Mayotte. 20 October 2023: Vivo Energy, the leading pan-African
distributor of high-quality fuels, lubricants and LPG, is pleased to announce
that it has reached an agreement to acquire Somagaz, the integrated operator
that imports, stores, bottles and distributes liquefied petroleum gas (LPG) in
Mayotte, a market in which it is by far the market leader.

 

On completion of the transaction, Vivo Energy will take control of the
activities of Somagaz SAS and its subsidiaries, Sigma SAS (in charge of LPG
supply, storage and bottling) and SN Somagaz SAS (in charge of LPG
distribution to customers) in Mayotte.

 

For over 27 years, Somagaz has been developing its business in Mayotte's
fast-growing LPG market, with a clear mission to ensure the security and
continuity of the Department's LPG supplies, avoiding any stock shortages that
could be detrimental to the people of Mayotte. The company operates in strict
compliance with French and European safety, health and environmental
standards. Today, Somagaz is able to meet the Department's growing demand
thanks to its logistics, depot and filling centre in Longoni, which has a
capacity of 1,000 tonnes. The company distributes LPG cylinders to a network
of around 140 retail outlets, plus cylinder and bulk distribution to
industrial customers across Mayotte.

 

"We are delighted to announce the acquisition of Somagaz, adding a new market
to Vivo Energy's network of 23 African and Indian Ocean countries today." said
Stan Mittelman, CEO of Vivo Energy. "This acquisition fits perfectly with our
growth strategy, enabling us to expand our LPG business, reach new customers
and deliver further value."

 

On behalf of Somagaz's current shareholders, Anil Currimjee, MD, Ceejay Gas
Ltd added: "After more than 27 years of developing Somagaz and growing the LPG
market in Mayotte, we are convinced that the Vivo Energy Group is well placed
to support Somagaz in a new phase of its development for the benefit of
customers, the Department and employees. This is a simple change of control
that will have no impact on the operational capacity of Sigma or Somagaz, nor
on the continuation of its commercial activity and LPG deliveries to its
customers.  We would like to express our gratitude to our customers and
partners in Mayotte for their support over the past 27 years."

 

Stan Mittelman concluded: "LPG is an important component of the energy
transition and is becoming increasingly popular in Africa and the Indian
Ocean. It is a cleaner source of energy than traditional fuels such as wood,
charcoal or paraffin. It reduces CO(2) emissions and is easier for customers
to access.  Having acquired LPG businesses in Reunion and Namibia earlier
this year, we are focused on accelerating the growth of our LPG business. We
look forward to concluding this transaction and welcoming our future Somagaz
colleagues to Vivo Energy, to continue to safely develop the LPG industry in
Mayotte and contribute to its economic and social development in the years to
come."

 

The transaction is currently subject to regulatory clearance and the
fulfilment of conditions precedent. The financial details have not been
disclosed.

 

End

 

Notes to editors:

 

Media contacts:

 Isabelle Schunk

 Vivo Energy

 isabelle.schunk@vivoenergy.com (mailto:isabelle.schunk@vivoenergy.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 2,650 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. It provides fuels, lubricants, liquefied petroleum gas
(LPG), and solar energy solutions to business customers across a range of
sectors including marine, mining, construction, power, transport, wholesalers
and manufacturing. The company employs around 2,800 people, has access to over
1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell
and Vivo Lubricants B.V., that sources, blends, packages and supplies
Shell-branded lubricants.

 

For more information about Vivo Energy, please visit www.vivoenergy.com
(http://www.vivoenergy.comV)

 

About Somagaz:

Somagaz is a fully integrated operator specialising in the liquefied petroleum
gas market in Mayotte. Through its three subsidiaries Somagaz, Sigma and SN
Somagaz, it supplies, stores, bottles and distributes gas in cylinders and in
bulk on the domestic market.

 

The group began operations in 1996 as an LPG distributor in Mayotte, via
Somagaz, with cylinders being filled in Mauritius. In 2008, it began importing
LPG in bulk, storing it and bottling it at its own facilities in Longoni via
Sigma.

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