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Helios signs $115.8m agreement with Oando

Africa Global Funds
Sept. 21, 2016, midnight
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Word count: 306

Helios Investment Partners has signed a $115.8m agreement with Oando to acquire 49% of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited (OGP).

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Helios Investment Partners has signed a $115.8m agreement with Oando to acquire 49% of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited (OGP).

Tope Lawani, Co-founder and Managing Partner of Helios Investment Partners, said: “This transaction is consistent with Helios’ strategy of investing in businesses that provide cost-effective 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,” he added.

The agreed transaction 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, whereas the residual 2% will be held by a local entity.

Oando PLC is an integrated oil and gas company headquartered in Nigeria.

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 to over 175 industrial and commercial customers via its vast gas infrastructure network.

With over 260 kilometers in pipeline infrastructure built, OGP provides energy solutions primarily through its subsidiaries: Gaslink Nigeria, Gas Network Services and Central Horizon Gas Company.

Adewale Tinubu, Oando PLC Group CEO, 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,” he added.

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