CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Vivo Energy (VVO) stock takes off after Vitol deal

By David Burrows

11:02, 25 November 2021

Rising share price graph
Shares in Vivo Energy rose 20% today – Photo: Alamy

Vivo Energy’s stock price soared almost 20% in late morning London trading after it was announced that Vitol Investment Partnership had reached an agreement on a recommended cash offer for Vivo, a gas supplier to large areas of Africa.

The Vivo Energy stock price hit 133.50p ($1.78) in late morning trade, up 19.84%.

Under the terms of the offer, a new wholly owned, indirect subsidiary of Vitol Investment Partnership II (an investment vehicle) will acquire the entire issued and to be issued share capital of Vivo (not already owned by existing Vitol shareholders) for $1.85 in cash for each Vivo share.

The deal values Vivo on a fully diluted basis at approximately $2.3bn.


453.45 Price
-3.090% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.49


235.29 Price
-1.640% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.33


17.21 Price
+10.660% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.39


7.48 Price
+7.700% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.07

Good deal for shareholders

Commenting on the agreement, John Daly, chair of Vivo, said: In considering Vitol’s various approaches, the independent Vivo directors recognise that Vitol and its concert parties already own 36% 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.”

He added: “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.”

Read more: Big oil responsible for high gas prices: US President

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading