https://www.engineeringnews.co.za

Oando sells 60% stake in downstream businesses

Oando sells 60% stake in downstream businesses

Photo by Bloomberg

30th June 2015

By: Creamer Media Reporter

  

Font size: - +

Integrated energy solutions group Oando will sell a 60% economic interest, as well as 51% of the voting rights, in its downstream businesses to HV Investments II (HVI) for $276-million.

HVI was a joint venture between Africa-focused investment firm Helios Investment and energy trader Vitol Group.

The Oando downstream businesses primarily comprised petroleum product retailer and distributor Oando Marketing; petroleum products trader Oando Supply & Trading; crude oil and refined petroleum products trader Oando Trading; Ghanaian supply and trading entity Ebony Oil & Gas; and Apapa SPM – a marina jetty and subsea pipeline system.

Pursuant to the acquisition, a special purpose vehicle (SPV) would hold 100% of the economic interests and 49% of the voting rights of Oando Downstream.

HVI would own 60% and Oando 40% of the SPV.

“This transaction is an exciting development in downstream West Africa. By working with Vitol, a global energy and commodities company and the largest independent trader of energy products, and Helios, a premier Africa-focused private investment firm, Oando has repositioned Oando Downstream for a new era of investment growth and profitability.

“Importantly, the divestment enables Oando to focus on its upstream and midstream businesses. Even as proceeds of the sale will be applied almost entirely to reducing Oando’s leverage, we underscore the portfolio rationalisation achieved alongside the balance sheet optimisation,” said Oando CEO Wale Tinubu.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.075 0.127s - 170pq - 2rq
Subscribe Now