Oando PLC, an integrated oil and gas company headquartered in Nigeria, has announced 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 Oando’s midstream business subsidiary, Oando Gas and Power Limited (OGP).
The agreed transaction consideration of $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.
Recently, in another development, Oando PLC which is listed on both the Nigerian and Johannesburg Stock Exchange, has announced a $210 million recapitalization of its downstream operations by HV Investments II B.V., (“HVI”), a joint venture owned by Helios Investment Partners (“Helios”), a premier Africa-focused private investment firm and the Vitol Group (“Vitol”), the world’s largest independent trader of energy commodities (together, the “Consortium”).
As a result of this and further to the announcement on June 30, 2015, a new company will be formed to hold interests in Oando Marketing Limited, Oando Supply & Trading Limited, Apapa SPM Limited, and Oando Trippmart Limited. Oando PLC will retain 49% shareholding in the newly formed corporate vehicle, with the Consortium owning 49%, and the residual 2% owned by a local entity.
Time is hard in Nigeria indeed. It is simply unbelievable that Oando needs to sell assets to survive the low crude prices and the recession.