One of Nigeria’s leading energy groups, Oando Plc., has announced the divestment of its residual 25 per cent stake in oil and gas firm, Axxela Limited, for an impressive $41.5million. The energy group, in a statement, said the move is aimed at further reducing its debt profile, with the stake bought by Helios Investment Partners.
The move is coming 3 years after Helios acquired the initial 75 per cent interest in Axxela for $115.8m, with Oando’s Group Chief Executive, Wale Tinubu, saying: “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 monetised and the company’s status as the indigenous partner of choice for international companies looking to invest in Nigeria. This transaction favourably 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, which are responsible for almost 50 per cent of the 42 trillion cubic feet that will be delivered by the seven CGDPs by 2020.”
On his own, Bolaji Osunsanya, CEO of Axxela Limited said: “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.”