Citi Business News has gathered Vivo Energy Ghana is to cede 8 percent stake of the company to a Ghanaian firm CH Group.
It is unclear how much CH Group will pay for the shares.
The sale of the shares which is subject to a number of formalities that are typical for an acquisition of this nature, when completed, will result in local Ghanaian shareholdings in Vivo Energy Ghana Limited increasing to a little over 25%.
The figure fulfils the divestment requirements outlined in Vivo Energy Ghana Limited’s oil marketing company licence.
Vivo Energy which distributes and markets Shell-branded fuels and lubricants was last year accused of operating in the country unlawfully by the Member of Parliament for Obuasi West, Kwaku Kwarteng.
According to him Vivo had refused to give up its shares to indigenous Ghanaians to bring the total Ghanaian investment in their company to 25% a condition which was required for its operation in Ghana.
Vivo however denied the accusations.
Vivo Energy in response to the accusations at the time, said although there are no binding laws on it to cede 25% of its shares to local participants, it “agreed, as a responsible foreign investor, to divest the 8% shares to achieve the 25% Ghanaian equity in the Company”.
A joint statement from Vivo Energy Ghana Holdings BV and CH Group Limited today March, 30, 2015 said CH Group Ghana Limited has agreed to purchase 8% of the shares in Vivo Energy Ghana Limited from Vivo Energy Ghana Holdings BV.
The statement added that ‘Vivo Energy Ghana Limited has been working closely with both the National Petroleum Authority and the Ministry of Energy and Petroleum in order to increase local ownership of the company. The company looks forward to its continued constructive and positive relationship with all stakeholders as it continues to grow and develop its business, providing employment opportunities for local Ghanaians and high quality Shell-branded fuels and lubricants for its customers in Ghana’.
By: Vivian Kai Lokko/citifmonline.com/Ghana