Firms Explain Acquisition Of Nigeria’s Oando

Vitol Group has partnered
with Africa focused investment firm, Helios Investment, to acquire the downstream business of Nigeria’s Oando Plc.
The two firms had recently announced that they were coming together as a consortium, to acquire 60 percent of the economic rights and 51 percent of the voting rights in the West African downstream business of Oando Plc, an integrated oil and gas company headquartered in Nigeria for a sum of US$276 million, subject to the receipt of regulatory approvals and customary purchase price adjustments, including working capital.
According to a statement released by the consortium, the new downstream and retail business would be established as a standalone, independent company, led by a local management team.
Its assets will comprise over 400 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty’ as well as complementary businesses, chiefly LPG filling and distribution, lubricants and interest in a supply and bulk distribution company in Ghana.
The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12 percent.
The Consortium is committed to investing for growth, and working with experienced and highly skilled local management team to enable the business to capitalize on 3-5 percent annual growth in Nigeria’s demand for oil products.
It is anticipated that the service stations will retain the Oando brand.
President and CEO, Vitol, Ian Taylor said, “Vitol has a long history of working in Nigeria and is proud to have served our customers here over many years. This investment is a further reflection of our confidence in the Nigerian economy, and will be independent of the services we provide to our long standing Nigerian customers.
“We are looking forward to building this new downstream business, alongside our many other business activities in Nigeria.”
Co-founder and Managing Partner of Helios Investment Partners, Tope Lawani, said; “this is a market leading downstream energy business with a strong brand and exciting growth potentials.”