Helios, Vitol Group Acquire Major Stake In Oando

A consortium comprising Helios Investment Partners and The Vitol Group has reached an agreement to acquire 60 per cent of the economic rights and 51 per cent of the voting rights in the West African downstream business of Oando Plc, an integrated oil and gas company with headquarters in Nigeria, for US$276 million.

The pact is subject to regulatory approvals and customary purchase price adjustments, including working capital.

The new downstream and retail business will be established as a standalone and independent company to led by a local management team.  Its assets will comprise over 400 service stations in Nigeria with supporting infrastructure, including 84,000 tones of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

The new business will be the second largest downstream company in Nigeria, with a market share of 12 per cent. The Consortium is committed to investing for growth, and working with the experienced and highly skilled local management team to enable the business to capitalise on the 3-5 per cent per annum growth in Nigeria. It is anticipated that the service stations will retain the Oando brand.