In a tweet posted on its official handle and website, Axxela Limited (formerly known as Oando Gas and Power) has announced the divestment of Oando Plc’s 25% stake held in the firm. The stake was purchased by Helios which is the majority stakeholder.
Oando in a notice sent to the Nigerian Stock Exchange stated Helios bought the stake for $45 million. Proceeds would be used to pay down the company’s debt.
The net proceeds of the transaction will be applied in partially prepaying the Group’s Medium Term Loan (MTL). The acquisition by Helios was effected through HIP GLOVER S.à.r.l, a special purpose vehicle incorporated by Helios.
Helios purchased a 75% stake in the firm (which was then known as Oando Gas and Power) for $115.8 million.
Wale Tinubu Oando’s Group CEO, however stated the firm would expand its holdings in the gas space.
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 (CGDPs)
Axxela is a designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 160 industrial and commercial customers via a vast network of gas infrastructure.
The company has over 280km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company Limited.
Helios Investment Partners was founded by Tope Lawani and Babatunde Soyoye in 2004.
Oando Plc closed at N4.95 in today ’s trading session, up 3.13%. Year to date, the stock is down 1%.