Oando Plc Signs $115.8 Million Midstream Agreement with Helios Investment Partners

Proshare

Monday, September 19, 2016 2:58pm / NSE

Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, has announced the execution of a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP (“Helios”), a premier Africa-focused private investment firm, to acquire 49% of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited (“OGP”).

The agreed transaction consideration of US$ 115.8 million is 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.

With over 260km in pipeline infrastructure built, OGP provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited (“Gaslink”), Gas Network Services Limited (“GNSL”), and Central Horizon Gas Company (“CHGC”).

Speaking about 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 added: “This transaction is consistent with Helios’ strategy of investing in businesses that provide costeffective 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.’’

Related News

1.       Oando Plc Announces H1 2016 Results Posts N212 Billion Top Line Revenue

2.      OANDO Declares N44.57bn Loss in Q2'16 Results,(SP:N5.07k)

3.      Oando Plc to Report Materially Lower Earnings for Q2 2016 Due to the Impact of Naira Devaluation

4.      Oando Plc Key Highlights on Q4 15 and Q1 16

5.      OANDO Concludes Recapitalization Partial Divestment of Equity Stake in Its Downstream Operations

6.      Material Uncertainty May Cast Doubt on Oando’s Ability to Continue as a Going Concern – Ernst & Young

7.      OANDO Releases Q4 15 and Q1 16 Results Declares N4.10bn PAT in Q1 SP N6.50k

8.     Oando Plc Secures 5 Year N94.6 Billion Medium Term Facility with 10 Nigerian Banks

9.      Oando explains what Deregulation of Petrol Price means for its Downstream Operations

10.  Why Oando Plc's 2015 Audited Statements will be released on May 31, 2016

11.   OANDO to acquire OER Minority Shares for a Consideration of US 1.20 per share in Cash

12.  Bursa Malaysia Publicly Reprimands Quoted company for Breach of Main Market Listing Requirements 

13.  OANDO Notifies on Late Filing of 2015 Audited Financial Statements

14.  OANDO Gives a Brief on Key Matters Impacting Its 2014 Full Year Release

15.   NSE Continues its Review of the Situation of Oando Plc

16.  OANDO posts N418million loss as revenue slips by 5.48 in Q3 15 - Proshare 

17.   OANDO Releases Q4'14, Q1'15 and Q2'15 Results, Declares N35.13bn Loss in Q2,(SP:N10.14k) 

Related News
SCROLL TO TOP