The deal comprises:
Rwanda SARL includes 19 service stations and operates one depot, representing sales of 38 million tons a year or 22% share of the market.
The holding in Total Burundi will complement Engen's existing business in that country with 29 additional commercial customers.
The shares in Total Guinea Bissau will give Engen access to four service stations and 37 commercial customers, which represents 29% market share. And for 50% in Aero Services SARL Engen will obtain Jet A1 fuel storage, Avgas storage and into-plane refuelling truck capacity.
Engen's African ambitions are well-documented. Its International Business Development division recorded a 62% increase in profits for the 2007/8 financial year, and the division remains a pivotal growth engine for the company. By 2016, the company aims to derive 30-35% of group sales volumes from its African operations.
Managing director and CEO of Engen, Rashid Yusof says, “We see this as another solid step in our expansion. Engen has returned profits in every country where it has operations in sub-Saharan Africa and our outlook is positive for these three countries. They are experiencing good GDP growth and relatively low inflation rates, which bodes well.”
Subject to the necessary approvals, and pending business integration, the deals will be finalised before the end of this year. Engen has committed to continuing operations as is until finalisation of the deals, and to retain staff and existing supply and business relationships in all three countries.
