Seven En­ergy con­cludes N39.7bn EHG ac­qui­si­tion

Daily Trust - - BUSINESS - From Kay­ode Ekun­dayo, La­gos

Seven En­ergy Limited, a whol­ly­owned sub­sidiary of Seven En­ergy In­ter­na­tional Limited, said yes­ter­day that it has com­pleted the ac­qui­si­tion of the en­tire is­sued share cap­i­tal of East Hori­zon Gas Com­pany Limited (EHGC) for a to­tal con­sid­er­a­tion of up to $250 mil­lion, about N39.750 bil­lion.

This ac­qui­si­tion en­hances Seven En­ergy’s po­si­tion as a leading gas mar­ket­ing and dis­tri­bu­tion com­pany in South East Nigeria, ex­pand­ing the reach of its gas pipe­line net­work in this grow­ing mar­ket to over 260 km, di­ver­si­fy­ing its cus­tomer base across key sec­tors of the Nige­rian econ­omy and in­creas­ing long-term con­tracted gas sales vol­ume to 200 mil­lion met­ric cu­bic feet per day (MMcfpd).

EHGC is a gas dis­tri­bu­tion and mar­ket­ing com­pany that op­er­ates the 128km East Hori­zon gas pipe­line through Akwa Ibom State and Cross River State in South East Nigeria. EHGC also has a gas sales agree­ment with an in­dus­trial off­taker to sup­ply up to 25 mil­lion cu­bic feet of gas per day (mmcfpd), in­creas­ing to 50 mmcfpd upon com­ple­tion of the planned ex­pan­sion of the off­taker’s ex­ist­ing plant, un­der a 20-year gas sales agree­ment ex­pir­ing in 2032.

Speak­ing on the ac­qui­si­tion in a state­ment, Phillip Ihenacho, Chief Ex­ec­u­tive Of­fi­cer of Seven En­ergy, said the “deal marks a sig­nif­i­cant mile­stone for Seven En­ergy as we con­tinue to deliver on our strat­egy to be­come the mar­ket leading in­de­pen­dent gas dis­trib­u­tor in South East Nigeria,” adding that “the East Hori­zon pipe­line is an im­por­tant com­po­nent of the en­ergy in­fra­struc­ture of the re­gion and we are pleased to add this as­set to our port­fo­lio.”

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