Oando, one of Nigeria’s biggest oil and gas firms is undergoing a bit of a makeover. This is in the form of a new company called OVH Energy.
A statement from the Nigerian Stock Exchange states that in a bid to recapitalize its downstream operations, Oando has raised $210 million from HV Investments.
This is what has led to the creation of OVH Energy which is a conglomeration of Oando Marketing Limited, Oando Supply & Trading Limited, Apapa SPM Limited, and Oando Trippmart Limited which makeup Oando’s downstream assets.
According to Wale Tinubu, Oando’s CEO, he said of the new deal, “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,
“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 is set to hold on to 49% of the newly formed OVH Energy while HV get another 49%. The 2% remnant goes to 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.
The new entity borne of the union of Oando and HV investments is set to be one of Africa’s foremost downstream fuels company with a market share of 12 per cent. OVH will also commandeer over 350 service stations in Nigeria alone.
The plan is to make the new move as seamless as possible with Tinubu now serving as Chairman of OVH Energy while Yomi Awobokun, Oando Marketing’s CEO, will continue in his role.
Clearly excited, Tope Lawani, Co-founder and Managing Partner of Helios Investment Partners said of the new deal, “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,”