Oando raises $210 million from Helios Investment Partners and Vitol Group

05 Jul 2016
Financial Nigeria


Oando CEO Wale Tinubu

Oando, a leading Nigerian oil and gas firm, has raised $210 million from HV Investments to recapitalize its downstream operations, according to a statement released on the Nigerian Stock Exchange on Monday.

With the new investment, Oando said a new company called OVH Energy will be formed to hold its downstream assets – which includes Oando Marketing Limited, Oando Supply & Trading Limited, Apapa SPM Limited, and Oando Trippmart Limited.

“Despite global economic headwinds, we have taken the proactive approach to establish a strategic partnership which will leverage Oando’s sector dominance, considerable local knowledge and expertise, together with HVI’s international, and technical capabilities,” said Wale Tinubu, Oando’s CEO.

“This partnership will reinvigorate Nigeria’s downstream sector and create one of Africa’s largest downstream operations. We are extremely confident in the success and potential returns this alliance will deliver.”

Oando said it will retain 49 percent shareholding in the newly formed company, HV Investments will own 49 percent shareholding, while the residual 2 percent will be owned by a local entity.

HV Investments is a joint venture between Helios Investment Partners, a London-based Africa-focused private equity firm, and Vitol Group, the world’s largest independent trader of energy commodities.

OVH’s assets will comprise over 350 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty. Other assets include a chiefly liquefied petroleum gas (LPG) filling and distribution network, lubricants businesses, and an interest in a supply and bulk distribution company in Ghana.

The new company will be the second largest downstream fuels company in Nigeria, with a market share of 12 per cent. Under the new business structure, Tinubu will serve as Chairman of OVH Energy while Yomi Awobokun, Oando Marketing’s CEO, will continue in his role.

“We look forward to leveraging Helios’ expertise in support of OVH’s management team, and to building another partnership with Vitol, with whom we created Vivo Energy, a leading pan-African downstream business,” said Tope Lawani, Co-founder and Managing Partner of Helios Investment Partners.

Other Photos/Videos