Nigeria: oil giant Oando sells 60% downstream business to HVI

Nigeria’s integrated oil and gas company, Oando Plc, has entered into a definitive $276 million deal with HV investments (HVI) to sell 51 per cent of the voting rights and 60 per cent of the economic rights to its downstream business, as reported by The Nation.

The agreement is still subject to regulatory approval and customary purchase price adjustments, including working capital.

HV Investments is a joint venture owned by a fund advised by Helios Investment Partners and the Vitol Group - the two had previously partnered to create the African Shell-branded fuel distributor Vivo Energy.

“Given our successful partnership with Vitol to create Vivo Energy we are confident that our expertise and regional presence will support the management team in capitalising on its strong market position and the compelling growth opportunities in Nigeria,” said co-founder and Managing Partner of Helios Investment Partners, Tope Lawani.

Oando Plc, Nigeria’s largest private energy company, operates in the downstream market through Oando Marketing Plc (OMP), a petroleum retailing and distributing company with over 400 gas stations in Nigeria, Ghana and Togo. OMP has various key subsidiaries included in the HVI acquisition: Oando Ghana Limited, Oando Togo SA and Clean Cooking Fuel Investments Limited, amongst others.

“This transaction is an exciting development in downstream West Africa. By working with Vitol and Helios we have repositioned Oando Downstream for a new era of investment growth, profitability, and this venture holds unprecedented opportunities for the business,” stated CEO of Oando Plc Wale Tinubu.