Oando Plc continues to sell assets, Helios helping on recapitalization

Oando Plc continues to sell assets, Helios helping on recapitalization

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.

Share this post

Post Comment