Oando Plc /Helios Investment Deal Excites Investors


Oando Plc’s deal with the Helios Investment Partners LLP, a premier Africa-focused private investment firm, to acquire 49 per cent of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited (OGP) is exciting some investors, THISDAY checks have revealed.

Oando had last Monday said the agreed transaction consideration of $ 115.8 million is conditional upon the receipt of regulatory approvals and subject to customary purchase price adjustments. The deal is is the final leg in the integrated energy firm’s strategic initiatives to reduce its debt and return to profitability.
Upon completion, Oando will retain 49 per cent of the voting rights in OGP, while the residual two per cent will be held by a local entity.

THISDAY checks showed that some investors are increasing their stakes in the Oando Plc, taking position in expectation that the deal will be successful and impact positively on the performance of the company.
The shares of Oando Plc have appreciated as a result of the renewed interest by investors, rising by 17 per cent within four days. The stock led price gainers to close at N6.00 yesterday.

Commenting on the deal with Helios, Group Chief Executive of Oando Plc, Adewale Tinubu had 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.”

Also speaking on the development, the Co-founder and managing partner of Helios Investment Partners, Tope Lawani added: “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.’’

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.