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Vivo Energy Agrees To Be Bought By Vitol Group In $2.3 Bln Deal; Shares Up

Shares of Vivo Energy Plc (VVO.L) were gaining around 20 percent after the African retailer of shell and engen-branded fuels and lubricants Thursday announced its agreement to be acquired by Vitol Group for $1.85 or 139 pence in cash for each Vivo Share.

The deal values Vivo on a fully diluted basis at approximately $2.3 billion or 1.8 billion pounds.

Vitol Investment Partnership II Limited or VIP II, an entity advised by employees of the Vitol Group, reached agreement on the terms of a recommended cash offer to acquire all remaining shares of Vivo not owned by existing Vitol Shareholders.

The offer is expected to be effected by means of a scheme of arrangement.

The per share price comprises $1.79 in cash for each Vivo Share, which will be payable to all Vivo Shareholders other than the existing Vitol Shareholders, plus $0.04 per Vivo Share in the form of a 2021 Final Dividend, and $0.02 per Vivo Share in the form of a 2022 Special Dividend.

The per share price represents a premium of around 24.6 percent to the closing price per Vivo Share of 111 pence on November 24, being the last business day prior to the announcement.

Vitol Africa B.V. and VIP Africa II B.V. have been founding shareholders of Vivo, following Shell's sale of some of its downstream business in 2011, and currently hold in aggregate a 36 percent interest in Vivo.

In London, Vivo Energy shares were trading at 133.80 pence, up 20.11 percent.

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