Oando announces sale of subsidiary to offset debt

Nigerian indigenous energy company, Oando Plc, Thursday announced the sale of its midstream business subsidiary, Axxela Limited, to Helios Investment partners for $41.5 million.

This, the company said it did to partly offset $1.5 billion long-term debt after purchasing Conoco Phillips.

The net proceeds of the transaction will be applied in partially prepaying the Group’s Medium Term Loan (MTL).

Helios Investment Partners is a private equity investing firm operating in Africa and based in London, United Kingdom, with additional offices in Nairobi, Kenya and Lagos, Nigeria.

Speaking on the sale, Oando Chief Executive Officer, CEO, Mr. Adewale Tinubu said: “The completion of this divestment signifies another win for the company. The divestment further reinforces Oando’s ability to create value that can be monetized and the company’s status as the indigenous partner of choice for international companies looking to invest in Nigeria.

“This transaction favourably positions us to significantly reduce our debt profile and remain focused on growth through our dollar denominated businesses.”