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StanChat Invests $47.5m in Nigerian Firm



Standard Chartered Private Equity Limited, a subsidiary of Standard Chartered has invested $47.5million to acquire a minority stake in Seven Energy, a leading Nigerian gas exploration and development company. 



Seven Energy was formed in 2007 and is focused on the provision of gas to leading industrial firms in Nigeria.  A statement by Standard Chartered said the investment will help develop Seven Energy’s business and strengthen its competitive positioning.



The deployment of funds will provide a much needed stimulus for the company to cater to Nigeria’s growing energy needs. In particular, Standard Chartered envisages that in the medium term, the investment will back the company’s existing management team in its drive as a pioneer and consolidator within Nigeria’s gas industry,” the statement added.



The Chairman of Seven Energy, Phillip Ihenacho, said: “The capital will be used to develop the business and provide essential infrastructure to facilitate delivery to domestic industrial users in South-Eastern Nigeria. The support from Standard Chartered validates our strategy and strengthens our longer term competitive positioning.”



The Managing Director and Chief Executive of Standard Chartered Bank Nigeria Limited, Christopher Knight, said: “We are proud to invest in Seven Energy as Seven’s value proposition is uniquely hinged on the monetization of Nigeria’s substantial gas reserves to meet the country’s growing energy needs. Our established footprint in Asia, Africa, and the Middle East, along with our long history of supporting trade flows to and from these regions, places us in a unique position to provide vital funding to growing companies in growing economies.”



The Head of Standard Chartered’s African Private Equity business, Marlon Chigwende, said: “Seven Energy has a strong technical and commercial team, combined with a long term strategy. We will continue to invest equity capital in strong businesses and management teams across the African continent. After a year of turmoil in the international debt markets, we see a clear need for committed equity to support growth.”



According to the Head of Standard Chartered Nigeria’s private equity business, Dr Yemi Osindero, 2010 will be an active year for Standard Chartered in Nigeria.   “We have long term equity capital available to assist good companies that want to accelerate growth. We also have a knowledgeable team to assist the management and shareholders of our investee companies to achieve their objectives.”  By the investment, Osindero will join the board of Seven Energy.



(Source: ThisDay) 

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