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Thursday, April 04, 2019 06:45 PM / Oando Press Release
Oando PLC (referred to as “Oando” or the “Group”),
Nigeria’s leading indigenous energy group listed on both the Nigerian and
Johannesburg Stock Exchanges, today announced that it has divested its residual
25% interest in Axxela Limited (held through Glover Gas & Power B.V.) to
Helios Investment Partners (“Helios”), a leading private equity firm with a
focus on investments in Africa. The total purchase price for the transaction
was USD $41,500,000, thereby optimizing value from a non-core business activity
of the Group. The net proceeds of the transaction will be applied in partially
prepaying the Group’s Medium Term Loan (MTL). The acquisition by Helios was
effected through HIP GLOVER S.à.r.l, a special purpose vehicle incorporated by
Helios, which in 2016 had acquired the initial 75% interest in Axxela for
$115.8 million.
Commenting on the divestment, Oando PLC’s Group Chief
Executive, Wale Tinubu said: "The completion of this divestment signifies
another win for the Company. We pioneered the development of Nigeria’s foremost
natural gas distribution network which has subsequently grown to become the
largest private sector gas distributor in Nigeria creating a lasting impact on
both the sector and the Nigerian economy. 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 favorably positions us to significantly
reduce our debt profile and remain focused on growth through our dollar denominated
businesses. We will continue to maintain significant presence in the Midstream
as well as grow our gas aspirations via our Upstream gas assets in our NAOC
Joint Venture wherein we have four gas projects within the NNPC’s Seven
Critical Gas Development Projects (CGDPs), which are responsible for almost 50%
of the 42 TCF that will be delivered by the seven CGDPs by 2020.”
CEO Axxela Limited, Bolaji Osunsanya added: “As we
position to become the preferred and fast-growing gas and power portfolio across
sub-Saharan Africa, we pay homage to our origins, legacy, and storied history
as an Oando portfolio company. We are immensely proud of our impressive track
record of building substantial gas and power infrastructure across Nigeria, and
implementing essential Corporate Social Responsibility initiatives in our host
communities. As we commence a new journey, our audacious growth initiatives
across Nigeria and the sub-region will leverage our industry expertise,
experience, and longevity; while our affiliation as a full-fledged Helios
company will improve our access to capital. The continued growth, robustness,
and stability of our business enterprise, enables Axxela provide required
efficient and environmentally-friendly energy solutions for industrial and commercial
clients, leading to positive socio-economic impact in our markets of
operation.”
About Axxela Limited
Axxela Limited (“Axxela”) was, prior to the
divestment, the midstream affiliate of Oando PLC (formerly known as Oando Gas
& Power). Axxela is a designated natural gas shipper on the West African
Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer
of natural gas distribution in Nigeria, delivering at peak 80 million standard
cubic feet per day to over 160 industrial and commercial customers via a vast
network of gas infrastructure. With over 280km in gas pipeline infrastructure
built, Axxela provides unique energy solutions primarily through its
subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central
Horizon Gas Company Limited.
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