Oando Plc has reached definitive agreement to sell 49 per cent equity stake in its gas subsidiary, Oando Gas and Power (OGP) Limited for $115.8 million, about N46.32 billion at an exchange rate of N400 per dollar.
In the deal just announced, Oando would be selling the 49 per cent equity stake to a vehicle owned by funds advised by Helios Investment Partners LLP, a premier Africa-focused private investment firm.
Under the deal, Oando will sell the midstream business subsidiary Helios for an agreed transaction consideration of $115.8 million subject to receipt of regulatory approvals and 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.
OGP is reputed as 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 (mmscf/d) to over 175 industrial and commercial customers through its vast gas infrastructure network.
With over 260km in pipeline infrastructure built, OGP provides energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited (Gaslink), Gas Network Services Limited (GNSL), and Central Horizon Gas Company (CHGC).
Group Chief Executive, Oando Plc, Mr. Adewale Tinubu said the strategic alliance with Helios will firmly leverage the group’s local knowledge and expertise alongside Helios’ strong financial capabilities.
According to him, through the optimization of existing business operations and the expansion of its footprint, OGP 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,” Tinubu said.
Co-founder and managing partner of Helios Investment Partners, Tope Lawani said “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 said.
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