Objectives – Mvelelo

We seek to create a company that is black owned, controlled and managed in the petroleum sector

The objective is to create the largest petroleum group in South Africa

Look for new opportunities firstly within the Engen enterprise:
- New filling stations
- Buy existing ones
A professional management team to manage Mvelelo’s operations on a full-time basis
A board of directors to manage and oversee the affairs of Mvelelo
We will use our collective networks to create value for our shareholders

PROS & CONS
of the Combined Company

Retain full control of own assets
Retain full control of strategic direction
Some individuals have paid off their debt
Some individuals have their own land
Some individuals have negotiated favourable pricing with suppliers
Difficulties in accessing finance individually
Limited funds to purchase larger service stations on prime national routes
Limited growth opportunities, therefore taking longer to be able to access the same opportunities as the company (if at all)

16 combined service stations
Increased negotiating strength
Increased access to finance
More able to take advantage of opportunities arising from Petroleum Charter, capital flight and other reasons for sales of service stations or land
Assets owned by the business, with individuals owning shares in the business
Decision-making done as a group, as per governance structure, and no longer by the individual
Distribution of earnings will be decided upon by of the Combined Company