Vitol and Helios on the way to become majority shareholders of Shell in Africa
23 Août 2011
Evolution in the negotiations between Shell, Vitol and Helios. Vitol and Helios are on track to become majority shareholders in Shell's downstream activities in Africa.
Talks are underway between Shell, Vitol and Helios Investment Partners. The latest indications are that they will lead to a potential acquisition by Vitol and Helios interests in downstream activities of Shell in 19 African countries, including Mauritius, for a total of about $ 1 billion.
Under the terms of the proposed agreement, the Shell brand and products Shell would remain in each country, and Vitol and Helios will become majority shareholders in companies, while Shell would retain a stake in the two new joint ventures.
Vitol, one of the key players in global energy markets known as the largest independent brokerage in the world oil and Helios, a major investment firm focused on Africa and one of the few companies independent pan-African private equity firm, founded and run by Africans hold 80% stake and Shell 20%.
Under the terms of the exclusivity agreement, Shell will not enter negotiations with parties other than Vitol and Helios for the moment. In addition, under the potential agreement between the three companies, is expected to retain a Shell and the Shell brand will be maintained in all marketing activities, including those related to lubricants and retail trade .
Activity fuels, lubricants and Shell refinery in South Africa, its activities in Egypt Lubricants, LPG business in South Africa and Botswana, its exploration and production, its holdings related to liquefied natural gas, and most international business activities in Africa are not part of the perimeter of the proposed transaction. All other downstream activities in 19 countries, including lubricants, are concerned.
The negotiations focus on downstream activities of Shell, (network, commercial fuels, lubricants, liquefied petroleum gas (LPG), Bitumen, Marine and Aviation) in Morocco, Tunisia, Egypt, (except lubricants), Côte d'Ivoire, Burkina Faso, Ghana, Togo, Senegal, Mali, Guinea, Cape Verde, Botswana (except for LPG), Namibia, Kenya, Uganda, Tanzania, Madagascar , in Mauritius and Reunion.
Although these negotiations have passed the stage of exclusive, an important step, it does not guarantee the result to an agreement of sale, says one official sources.
" Further announcements will be made ??as to the progress of discussions at appropriate times. Meanwhile, Shell will continue to operate safely , "pre-t-on.
Shell had previously announced it was reviewing its options regarding the activities in question in accordance with its strategy to focus its footprint in the downstream in a smaller number of more substantial markets. Shell Mauritius started its activities on the island in 1905.