Oando has has announced the acquisition of Oando Gas and Power Limited. This is a result of the execution of a definitive agreement with a vehicle owned by funds advised by Helios Investment Partners LLP, to acquire 49% of the voting rights in the company.
According to a statement released by Oando, 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 company said 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, Gas Network Services Limited, and Central Horizon Gas Company.
Commenting on the deal, 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 said: “This transaction is consistent with Helios’ strategy of investing in businesses that provide cost effective and reliable energy access solutions.
He added that “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.’’