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Merger and Acquisition

MainOne to be Acquired by America’s Equinix in a $320m Deal

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MainOne - Investors King

Nigerian and West African data centre and cable service provider, MainOne is close to being acquired by an American internet company in a deal that is touted to have a value of $320 million.

In a release by Equinix, the $320 million deal is expected to be sealed and signed in the first quarter of 2022, pending the satisfaction of conventional closing conditions, including the required regulatory approvals.

A Public Relations personnel from MainOne confirmed the deal, but stated that he had access to limited information. He was however convinced that the deal would be a total buyout.

MainOne was founded in 2010 by Funke Opeke, a Nigerian. The company has over 1,000 kilometres of reliable terrestrial fibre networks across the southern region of the country, while also owning and operating a subsea network from Nigeria to Portugal (in Europe).

The company also has digital infrastructure assets including three data centres (which are operational) across the western area of Africa. It also has another facility under construction, which is set for a launch in Q1 2022. These facilities have helped the company enable connectivity for Nigeria’s business community.

Equinix, on this background believes that MainOne is one of the most thrilling tech businesses to come out of Africa. Charles Meyers, the CEO and President of Equinix which has its headquarters in California, stated that the acquisition of MainOne would be the first step in the company’s strategy to become a leading African carrier neutral digital infrastructure company in the long term.

Meyers said that MainOne’s leading position in interconnection and its experienced management team are critical assets in Equinix’s bid to become the leading neutral provider of digital infrastructure across Africa.

Meyers noted that the growth in data consumption in Africa is one of the fastest in the whole world, and MainOne’s infrastructure, customer relationships and operating capability will extend Equinix’s reach and boost opportunities for customers based in Africa and other parts of the world.

It was agreed in the deal that all members of the MainOne management team, including the CEO will continue in their respective roles. Equinix will also take on MainOne’s about 500 employees, but it is unclear what will happen to them under the new dispensation.

Merger and Acquisition

Flour Mills Receives Regulatory Approval for Minority Shareholder Buyout

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flour mills posts 184% increase in PAT

The Flour Mills of Nigeria Plc (FMN) has perfected plans to buy out minority shareholders to focus on strengthening its position as the future of African food businesses.

Boye Olusanya, the group managing director, stated that the company has received approval from the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission (SEC) to proceed with the purchase.

FMN disclosed on Tuesday that the buyout would be executed through a scheme of arrangement, supervised by relevant regulatory bodies.

According to Olusanya, this move aligns with FMN’s goal to become the leading Pan-African food business, improving its ability to innovate and grow, while focusing on long-term value for stakeholders.

He said the buyout would enhance FMN’s operational efficiency and decision-making agility.

The company plans to apply to the Federal High Court for approval to convene a shareholders’ meeting, where the resolution to buy out minority shareholders will be discussed.

Olusanya said the resolution would pass if at least 75% of shareholders, either in person or by proxy, approve it at the Court-Ordered Meeting (COM). FMN’s board has already recommended the offer to shareholders, citing the buyout’s potential advantages for innovation and sustainable growth.

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Merger and Acquisition

FBN Holdings Clarifies Merchant Banking Divestment, Retains Other Subsidiaries

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FBN Holdings

FBN Holdings has sought to clarify the recent divestment from its Merchant Banking business.

According to the lender, all its businesses and entities apart from the Merchant Banking business are not included in the divestment deal.

It said, “We wish to clarify that all other entities and businesses listed below are not included in the divestment, and they remain subsidiaries of FBNH and are well integrated into the Group’s strategic focus.”

The subsidiaries are FBNQuest Capital Limited, FBNQuest Asset Management Limited, FBNQuest Trustees Limited, FBNQuest Funds Limited, and FBNQuest Securities Limited.

“We reiterate that the divestment pertains solely to FBNQuest Merchant Bank Limited, with no impact on the continued operations or strategic positioning of our other subsidiaries within the Group,” the bank stated in a release signed by Adewale L.O. Arogundade, Acting Company Secretary.

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Merger and Acquisition

Aradel Energy Seals $16M Acquisition of Olo and Olo West Marginal Fields

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Aradel Holdings Plc, an indigenous energy company, has announced the successful acquisition of a 100 percent interest in the Olo and Olo West marginal fields, located in the Eastern Niger Delta, through its subsidiary, Aradel Energy Limited.

The deal, which was completed in collaboration with TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited (NNPC), is valued at $16 million, with an additional $3.5 million in deferred and conditional payments.

The Olo and Olo West Fields were formerly part of Oil Mining Lease (OML) 58, and the acquisition marks a significant milestone in Aradel’s strategic plan for growth in Nigeria’s oil and gas sector.

The deal is a major step towards enhancing energy security and bolstering Aradel’s commitment to providing sustainable energy solutions that drive economic development.

In a statement on Thursday, Aradel confirmed that the necessary regulatory processes are underway for the issuance of the Petroleum Mining Lease (for Olo) and the Petroleum Prospecting License (for Olo West).

This will follow the payment of relevant ministerial consent fees and the completion of the field development plans within designated timelines.

Aradel’s Chief Executive Officer and Managing Director, Adegbite Falade, expressed enthusiasm over the acquisition, emphasizing its importance in advancing the company’s vision of promoting energy security in Nigeria.

“The addition of Olo and Olo West marginal fields to Aradel’s portfolio is a significant inorganic growth milestone in furtherance of our long-term strategy to provide sustainable energy solutions that support economic growth,” Falade said.

Falade also praised the collaboration between the Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their support throughout the acquisition process.

He acknowledged the role of NNPC and TotalEnergies in facilitating the deal, highlighting their commitment to boosting Nigeria’s oil and gas production from marginal fields.

Marginal fields are oil or gas fields that have been discovered but left unattended for a decade or more.

Their development is seen as a crucial opportunity for indigenous companies like Aradel to step in and maximize Nigeria’s untapped energy resources.

Olo and Olo West, located 80 kilometers northwest of Port Harcourt, hold considerable potential for increasing Nigeria’s oil output.

Falade noted that the acquisition aligns with Aradel’s ambition to pursue both organic and inorganic growth in the energy sector.

He reiterated that Aradel is dedicated to expanding its footprint in Nigeria’s energy industry, and this transaction reflects the company’s ongoing efforts to achieve that goal.

The acquisition is particularly significant in light of Nigeria’s ongoing push for self-sufficiency in energy production.

The government has encouraged private sector investments in marginal fields as part of its broader efforts to increase the country’s oil and gas output, reduce reliance on imports, and create job opportunities for Nigerians.

Aradel’s acquisition of the Olo and Olo West fields underscores the company’s resolve to be a key player in the country’s energy future.

As the fields move towards development and production, Aradel will be playing a critical role in advancing Nigeria’s energy sector and contributing to the nation’s overall economic stability.

The energy firm has built a reputation for its innovative and responsible approach to energy production, and the Olo and Olo West acquisition is expected to further cement Aradel’s standing in the industry.

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