Oando sells 60% stake in downstream businesses
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.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation