Helios Investment Partners (“Helios”, acting on behalf of the funds to which it is advisor) and Vitol have agreed the acquisition of Shell’s 20% shareholding in Vivo Energy (“Vivo”), for US$250 million. On completion, Vivo will be owned 100% by Vitol and Helios. At the same time, a long-term brand licence agreement has been renewed with Shell such that Vivo Energy will continue to operate under the Shell brand.
Vivo Energy, the company behind the Shell brand in Africa, was created by Helios, Vitol and Shell in 2011 when Shell divested its majority share in its downstream operations in 14 African markets. Since then, its shareholders have made significant investments in people and assets, expanding the retail network from 1,300 to 1,700+ stations, its presence to 16 countries and enhancing Vivo’s industry-leading operational and safety performance. Vivo Energy plans an additional $300 million of investment over the next three years.
Chris Bake, Chairman of Vivo Energy and a member of Vitol’s Executive Committee said: “It has been a pleasure to partner with Shell in Vivo Energy. The Shell brand is well known and highly respected across Africa, and Vivo and its customers will continue to benefit from its use. We are proud of what Vivo has achieved to date; a strong commercial performance and excellent HSE, and are looking forward to the next phase of growth.”
Tope Lawani, co-founder and Managing Partner of Helios Investment Partners, said: “Together, in partnership with Shell and Vitol, we have played a key role in supporting Vivo Energy in its mission to create Africa’s most respected energy business. Shell is selling its remaining minority stake in the business while at the same time renewing the brand agreement that has contributed to Vivo’s success across the continent. We look forward to continuing to build the Vivo platform across Africa while upholding best-in-class standards and business practices.”
The transaction is expected to close during the first half of 2017.
Vitol is an energy and commodities company; its primary business is the trading and distribution of energy products globally – it trades over 6mbpd of crude oil and products and, at any time, has 200 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including; circa 15.5mm3 of storage across six continents, 390kbpd of refining capacity and Shell-branded downstream businesses in 16 African countries, as well as Australia. Revenues in 2015 were $168 billion. For more information: www.vitol.com.
Founded in 2004, Helios Investment Partners is one of the largest Africa-focused private investment firms, with a record that spans creating start-ups to providing established companies with growth capital and expertise. The Helios team applies developed world investment tools to African business opportunities, taking a platform-building approach to portfolio development. With private equity and direct lending strategies, Helios helps African businesses to grow by being a provider of capital across the capital structure.
One of the few independent pan-African investment firms founded and led by Africans, Helios leverages its local and global networks, identifying businesses opportunities and structuring proprietary transactions around them. The firm’s unique combination of deep knowledge of the African operating environment, a singular commitment to the continent and a proven capability to manage complexity, is reflected in its position as a partner of choice.
Managing funds totalling approximately $3 billion, Helios has a diverse LP base that comprises a broad range of the world’s leading investors, including sovereign wealth funds, corporate and public pension funds, endowments and foundations, funds of funds, family offices and development finance institutions across the US, Europe, Asia and Africa.