A regulatory filing at the Nigerian Stock Exchange, NSE,on Monday, September q9, indicated that Oando has reached definitive agreement to sell the 49 per cent equity stake and voting rights in OGP to a Special Purpose Vehicle (SPV) owned by Helios Investment Partners LLP (Helios), a premier Africa-focused private investment firm.
Upon completion, Oando will retain 49 per cent equity stake and voting rights in OGP, while the remaining two per cent would be held by a Nigerian firm. However, the agreed transaction consideration of $115.8 million is subject to the receipt of regulatory approvals and customary purchase price adjustments.
OGP is widely regarded 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 the country. It delivers at peak, 70 million standard cubic feet per day (mmscf/d) to over 175 industrial and commercial customers via its vast gas infrastructure network.
With over 260km in pipeline infrastructure built, OGP provides energy solutions primarily through three subsidiaries including Gaslink Nigeria Limited (Gaslink), Gas Network Services Limited (GNSL), and Central Horizon Gas Company (CHGC).
Its Group Chief Executive Officer, Oando Plc, Mr. Wale Tinubu said the strategic alliance will firmly leverage on the group’s local knowledge and expertise and Helios’ strong financial capabilities to build a more formidable company that will exceed existing performance.
“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,” Tinubu said.
In his remarks, co-founder and managing partner, Helios Investment Partners, Tope Lawani said the transaction was consistent with Helios’ strategy of investing in businesses that provide cost-effective and reliable energy access solutions. Oando had earlier used the same arrangement to conclude partial divestment of its downstream business.
