The Board and Management of Oando Plc has concluded arrangement to sell 49 per cent equity stake in its midstream subsidiary, Oando Gas and Power (OGP) Limited to a new investor, Helios Investment Partners for $115.8 million.
The transaction is however conditional upon the receipt of regulatory approvals and subject to customary purchase price adjustments.
Upon completion, Oando will retain 49% of the voting rights in OGP. The residual 2% will be held by a local entity.
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 (“mmscf/d”) to over 175 industrial and commercial customers via its vast gas infrastructure network.
Speaking on the agreement, Oando Plc Group Chief Executive, Adewale Tinubu said: “This strategic alliance will firmly leverage our local knowledge and expertise alongside Helios’ strong financial capabilities. Through the optimization 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.”
Co-founder and managing partner of Helios Investment Partners, Tope Lawani, was quoted in a statement issued by Oando as saying: “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.’’