Indigenous energy firm, Oando Plc has announced the completion of the N70.5 billion recapitalization of its downstream business with HV Investments II B.V.
The deal which was first announced on June 30, 2015, was expected see an immediate injection of an estimated N70.5 billion into Oando’s downstream operations and the larger Oando group.
Group Chief Executive, Oando Plc, Mr. Adewale Tinubu, who spoke on the successful recapitalization said: “Despite global economic headwinds, we have taken the proactive approach to establish a strategic partnership which will leverage Oando’s sector dominance, considerable local knowledge and expertise, together with HVI’s vast international, financial, and technical capabilities.
He said:‘‘This partnership will reinvigorate Nigeria’s downstream sector and create one of Africa’s largest downstream operations. We take great pride in our origins as a predominantly downstream company, and we are extremely confident in the success and potential returns this alliance will deliver.”
Under the new business structure, all Oando retail stations will retain the Oando brand but Oando Downstream will be renamed OVH Energy to reflect its new ownership structure and the commitment of its new shareholders.
OVH Energy will hold interests in Oando Marketing Limited, Oando Supply & Trading Limited, Apapa SPM Limited, and Oando Trippmart Limited. Oando PLC will retain a 49 percent shareholding in the newly formed corporate vehicle, with the HVI consortium also owning 49 percent. A residual 2 percent will be owned by a local entity.
