Axxela Limited (formerly known as Oando Gas and Power) announced the sale of the 25 percent stake Oando held in the firm. The development was posted on Axxela’s Twitter and official website.
Th stake sold by Axxela was purchased by Helios, which is the majority stakeholder. In a notice sent to the Nigerian Stock Exchange, Oando stated that Helios bought the stake for $45 million. Oando said the proceeds will be used to settle its debt.
The statement said “the net proceeds of the transaction will be applied to partially repaying the Group’s medium term loan (MTL). The acquisition by Helios was affected through Hip Glover SARL, a special purpose vehicle incorporated by Helios”.
Helios purchased a 75 percent stake in the firm for $115.8 million.
The Group’s Chief Executive Officer, Adewale Tinubu stated the firm’s dedication to expand its holdings in the gas space. He said “we will continue to maintain a significant presence in the midstream as well as grow our gas aspirations via our upstream gas assets in our NAOC joint venture wherein we have four gas projects within the NNPC’s seven critical gas development projects (CGDPS)”.
Axxela is a designated natural gas shipper on the West African Gas Pipeline (WAGP). The company is also pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 160 industrial and commercial customers via a vast network of gas infrastructure.
Axxela has over 280km in gas pipeline infrastructure built, and provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company Limited.