Addax seals deals to take over Engen

The deal comes after protracted negotiations, which gives the new owners the power to manage Engen’s 11 service stations spread in different parts of Kampala.

Addax, a Kenyan oil company, has closed a deal to take over Engen Uganda, which early this year announced its exit from the Ugandan market.

The deal comes after protracted negotiations, which gives the new owners the power to manage Engen’s 11 service stations spread in different parts of Kampala.
However, Daily Monitor understands the employees who had sued the South African oil company - Engen Uganda, early this year for wrongfully sacking are now planning to enjoin Addax as a defendant.
The employees had dragged Engen Uganda to court seeking for a court pronouncement challenging the unlawful termination of their contracts.

The 11 had asked court to force Engen to pay each of them about Shs500 million for statutory breach, illegal employment practices, breach of contract, and slavery among others.

Engen’s Group communication manager, Tania Landsberg recently declined to comment on the matter saying it was an issue before courts of law.
Mid this year, Engen Petroleum Limited, secretly took a decision to close shop in Uganda on claims that the company was sharpening its business focus in Sub Saharan Africa and as a result has decided to cease its Ugandan operations.

Mr Landsberg said in an email recently: “Engen’s business here is no longer viable in the current economic and trading environment.”
He added: “Engen will, however, remain poised for any future investment that may allow its business to acquire the necessary critical mass.”
iladu@ug.nationmedia.com