Oando sells subsidiary, Axxela to offset debt

Nigerian indigenous energy company, Oando Plc, Thursday announced the sale of said it has sold its midstream business subsidiary, Axxela Limited, to Helios Investment partners for $41.5 million.

This, the company said it did to partly offset $1.5 billion long-term debt after purchasing Conoco Phillips.

The net proceeds of the transaction will be applied in partially prepaying the Group’s Medium Term Loan (MTL).

Helios Investment Partners is a private equity investing firm operating in Africa and based in London, United Kingdom, with additional offices in Nairobi, Kenya and Lagos, Nigeria.

Read also: Nigerian govt to get $6.8 million AfDB loan to rebuild North East

Speaking on the sale, Oando Chief Executive Officer, CEO, Mr. Adewale Tinubu said: “The completion of this divestment signifies another win for the company. The divestment further reinforces Oando’s ability to create value that can be monetized and the company’s status as the indigenous partner of choice for international companies looking to invest in Nigeria.

“This transaction favourably positions us to significantly reduce our debt profile and remain focused on growth through our dollar denominated businesses.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now