Helios stake to help Oando reduce debt
Oando group CEO Adewale Tinubu says the transaction will also enable OGP to expand its footprint in Nigeria
HELIOS Investment Partners would pay $115.8m for 49% of the voting rights in Nigerian oil and gas group Oando plc’s subsidiary Oando Gas and Power (OGP), it said on Monday. The deal will help Oando to bring down debt. At the end of June, the group had total short-and long-term borrowings of 279.7-billion naira ($888.6m) against 138.2-billion naira of total equity. Oando’s shares, which are thinly traded, were unchanged at 40c on the JSE after the announcement. Two years ago they were at 245c. OGP has 260km of gas infrastructure in Nigeria and delivers 70-million standard cubic feet of gas a day to more than 175 industrial and commercial customers. Africa Oil & Gas Report said there were three bidders for the assets. Nigeria is critically short of power, with about 10,000MW of capacity serving a population of almost 200-million, compared with SA’s 43,000MW serving a population of about 53-million. In July, HV Investments, a joint venture between Helios and Vitol, completed an investm...
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