Oando Plc has executed a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP, a premier Africa-focused private investment firm, to acquire 49 per cent of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited (OGP).
In a notification to the Nigerian Stock Exchange (NSE), Oando said the agreed transaction consideration of $ 115.8 million is conditional upon the receipt of regulatory approvals and subject to customary purchase price adjustments.
Upon completion, Oando will retain 49 per cent of the voting rights in OGP, while the residual two per cent will be held by a local entity.
Speaking about the agreement, Group Chief Executive of Oando Plc, Adewale Tinubu 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.”
Also speaking on the development, the Co-founder and managing partner of Helios Investment Partners, Tope Lawani added: “This transaction is 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.’’
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.
With over 260 kilo metres 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.
Meanwhile, trading at the stock market resumed on a bearish note yesterday as the NSE All Share Index (NSE ASI) declined by 0.07 per cent to close at 27,839.93. Similarly, the market capitalisation depreciated by 0.07 per cent to close at N9.56 trillion.