Oando con­cludes N70.5 bn down­stream re­cap­i­tal­i­sa­tion

Daily Trust - - BUSINESS - From Mo­hammed Shosanya,La­gos

Oando Plc has com­pleted the N70.5 bil­lion re­cap­i­tal­i­sa­tion of its down­stream busi­ness with HV In­vest­ments II B.V., a joint ven­ture owned by a fund ad­vised by He­lios In­vest­ment Part­ners, a pre­mier Africafo­cused pri­vate in­vest­ment firm, and Vi­tol Group.

The deal was first an­nounced on June 30, 2015, and would see an im­me­di­ate in­jec­tion of an es­ti­mated N70.5bn into Oando’s down­stream oper­a­tions and the larger Oando group.

Com­ment­ing on the suc­cess­ful trans­ac­tion, Oando Plc Group Chief Ex­ec­u­tive, Ade­wale Tin­ubu, said that de­spite global economic head­winds, Oando took the proac­tive ap­proach to es­tab­lish a strate­gic part­ner­ship which would lever­age the com­pany’s sec­tor dom­i­nance, con­sid­er­able lo­cal knowl­edge and ex­per­tise, to­gether with HVI’s vast in­ter­na­tional, fi­nan­cial, and tech­ni­cal ca­pa­bil­i­ties.

He said: “This part­ner­ship will rein­vig­o­rate Nige­ria’s down­stream sec­tor and cre­ate one of Africa’s largest down­stream oper­a­tions. We take great pride in our ori­gins as a pre­dom­i­nantly down­stream com­pany, and we are ex­tremely con­fi­dent in the suc­cess and po­ten­tial re­turns this al­liance will de­liver.”

Un­der the new busi­ness struc­ture, all Oando re­tail sta­tions would re­tain the Oando brand.

How­ever, Oando Down­stream would be re­named OVH En­ergy (“OVH”) to re­flect its new ownership struc­ture and the com­mit­ment of its new share­hold­ers.

OVH En­ergy would hold in­ter­ests in Oando Marketing Lim­ited, Oando Sup­ply and Trad­ing Lim­ited, Apapa SPM Lim­ited, and Oando Tripp­mart Lim­ited.

Oando PLC would re­tain a 49 per­cent share­hold­ing in the newly formed cor­po­rate ve­hi­cle, with the HVI con­sor­tium also own­ing 49 per­cent.

A resid­ual two per­cent would be owned by a lo­cal en­tity.

The com­pany, re­cently, re­struc­tured a N94bn Medium Term Loan (MTL) facility for an ad­di­tional five years while re­duc­ing its in­ter­est rate bur­den.

Other strate­gic delever­ag­ing ini­tia­tives un­der­taken by the com­pany to en­hance its oper­a­tions and fi­nan­cial po­si­tion­ing in­cluded the N2.8bn farm out of its EEZ 5 and 12 blocks, and the N3.7bn sale of its Akute In­de­pen­dent Power Plant.

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