Vivo Energy PLC (LSE:VVO) said it accepted a raised US$1.85 (139p) per share offer from Vitol Group, valuing the company at S$2.3bn (£1.8bn).
The offer comprises US$1.79 per share in cash, a final or interim dividend of US$0.04 per share (depending on whether the offer is completed before or after the 2022 interim dividend record date) and a special dividend of US$0.02.
Vivo Energy, which retails and distributes Shell and Engen-branded fuels and lubricants across Africa, was founded by Vitol, Helios Entities and Shell ten years ago.
The recommended offer follows a US$1.55 per share proposed bid from Vitol in February this year, which Vivo rejected.
Vitol, which already has a 36% holding in Vivo, has agreed to acquire the 27.1% stake in Vivo held by Helios at US$1.79 per share.
Vitol has also received undertakings to accept the offer from independent Vivo directors holding 0.6% of the shares in the company.
Commenting on the offer, Vivo Energy chair John Daly said: "In considering Vitol's various approaches, the independent Vivo directors recognise that Vitol and its concert parties already own 36.0% of Vivo, and Vitol having secured agreement to acquire a further 27.1% of the company from Helios, meant that the independent Vivo directors have been focused on evaluating the value of such offers and the impact of a transaction on wider stakeholders.
“In securing the price available under the terms of the offer, representing a near 19%. increase on the original approach in February 2021, and around a 72% increase on the prevailing price at that time, the independent Vivo directors believe they have delivered a positive outcome for all stakeholders.
“The offer from Vitol represents an attractive value in cash for Vivo shareholders, and Vitol's proven track record of supporting Vivo's long-term growth plans will support Vivo in continuing to deliver benefits to its wider stakeholders."
Chris Bake, head of Origination at Vitol, said: "Since we founded Vivo with Helios and Shell, we have believed in the business' potential and we are excited to have it within the Vitol family, as a pillar of our strategy in Africa. We are pleased that both Helios and the independent Vivo directors support our proposal.”