Dutch energy giant Vitol, has progressed its bid to buy out shareholders in JSE-listed Vivo Energy shareholders, which distributes Shell and Engen branded fuels and lubricants in Africa, and has obtained key approval from the South African Reserve Bank.
Vitol which has formed a subsidiary named BidCo to act as an investment vehicle for the $2.3 billion (about R35.3 billion) cash deal to acquire all of the Vivo shares not already owned by Vitol.
Vivo, which owns over 2 300 filling stations across 23 African countries, does not operate in South Africa but has a secondary listing on the JSE.
On Monday, the company announced the Financial Surveillance Department of the South African Reserve Bank approved the scheme document detailing the offer and the subsequent cancellation of the listing of the Vivo shares on the JSE.
There are still a raft of approvals required before the deal can be finalised
Amongst other things, the scheme requires majority approval from shareholders and it must also be effected by a court sanction, as provided for by the UK Companies Act.
Subject to obtaining the requisite approvals, the scheme is expected to become effective in the third quarter of 2022.