20 September 2016, Lagos – Oando Plc, an indigenous energy group listed on both the Nigerian and Johannesburg stock exchange, has announced the execution of a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP to acquire 49 per cent of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited.
The company, in a statement made available to the Nigerian Stock Exchange, said the agreed transaction consideration of $115.8m was conditional upon the receipt of regulatory approvals and subject to customary purchase price adjustments.
It said upon completion, Oando would retain 49 per cent of the voting rights in OGP, adding that the residual two per cent would be held by a local entity.
The Group Chief Executive, Oando, AdewaleTinubu, said, “This strategic alliance will firmly leverage our local knowledge and expertise alongside Helios’ strong financial capabilities. Through the optimisation of our existing business operations and the expansion of our footprint, we will revolutionise the sector and position gas as a key driver for Nigeria’s economic empowerment.
“We look forward to completing the transaction, which will create a formidable leader of gas and power solutions in sub-Saharan Africa.”
The Co-founder and Managing Partner, Helios Investment Partners, Tope Lawani, was quoted to have described the transaction as consistent with Helios’ strategy of investing in businesses that provide cost-effective and reliable energy access solutions.
“We look forward to supporting OGP’s continued growth and working with all stakeholders to improve the reliability of gas supply to the company’s numerous industrial customers, who all play a critical role in the growth of the economy,” Lawani added.
According to the statement, OGP is the pioneer developer of Nigeria’s foremost natural gas distribution network and has subsequently grown to become the largest private sector gas distributor in Nigeria, delivering at peak, 70 million standard cubic feet per day to over 175 industrial and commercial customers via its vast gas infrastructure network.
It said, “With over 260km in pipeline infrastructure built, OGP provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company.”
- Punch
