Engen petroleum on sale again, attracting foreign investors from as far as Malaysia – reports

Media reports indicate that the South African petroleum company, Engen, is on sale and it has attracted overseas companies. 
 
According to reports, a Malaysian state-owned energy company, Petroleum Nasional, has revived a sale of Engen. 
 
Independent Media reveals that Petronas is working with advisers to solicit bids for its controlling stake in the fuel retail business, which could fetch about $2 billion (almost R34 billion), according to insiders. 
 
“It’s attracting interest from suitors including oil trading giants Trafigura Group, and Vitol Group in the Netherlands, the people said, asking not to be identified because the information is private,” reports the publication. 
 
“Petronas has been exploring options for its 74% stake in Engen on-and-off for some years, though the process appears to be gaining fresh momentum. The Malaysian firm is now inviting bidders to make second-round offers, the people said.” 
 
The daily publication’s report suggests that deliberations are ongoing, and there’s no certainty the suitors will proceed with binding offers, the sources said.  
 
“As part of good business governance and conduct, Petronas continuously reviews its portfolio,” the Malaysian company said in an emailed statement.  
 
“Petronas values Engen as an important part of its global business. Our priority for Engen is to ensure business continuity to allow it to sustain and grow.” 
 
Dubbed one of the biggest in the country and the company’s second-largest shareholder, South African investment firm Phemani, has also been considering reducing its 26% stake, Bloomberg News reported in May.  
 
As per the report, Phemani, established by former MTN CEO Phuthuma Nhleko, has reached out to prospective buyers and these include Royal Bafokeng Holdings. 
 
Engen, the operator of South Africa’s largest chain of gas stations, had R43.2 billion of total assets at the end of 2021.  
 
Furthermore, the company whose history stretches back to 1881, owns 1 280 service stations across seven countries, according to its website. 
 
Main Image: Engen Filling Station/The Business Telegraph