OANDO PLC - Oando PLC Announces Divestment of its Residual 25% Interest in Axxela Limited

Oando PLC Announces Divestment of its Residual 25% Interest in Axxela Limited

Oando PLC
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
(“Oando” or the “Company”)



Oando PLC Announces Divestment of its Residual 25% Interest in Axxela Limited (formerly Oando
Gas & Power Limited)

(Lagos, Nigeria) – April 4, 2019; Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading
indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges, today
announced that it has divested its residual 25% interest in Axxela Limited (held through Glover Gas &
Power B.V.) to Helios Investment Partners (“Helios”), a leading private equity firm with a focus on
investments in Africa. The total purchase price for the transaction was USD $41,500,000, thereby
optimizing value from a non-core business activity of the Group. The net proceeds of the transaction will
be applied in partially prepaying the Group’s Medium Term Loan (MTL). The acquisition by Helios was
effected through HIP GLOVER S.à.r.l, a special purpose vehicle incorporated by Helios, which in 2016
had acquired the initial 75% interest in Axxela for $115.8 million.

Commenting on the divestment, Oando PLC’s Group Chief Executive, Wale Tinubu said: "The completion
of this divestment signifies another win for the Company. We pioneered the development of Nigeria’s
foremost natural gas distribution network which has subsequently grown to become the largest private
sector gas distributor in Nigeria creating a lasting impact on both the sector and the Nigerian economy. 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 favorably positions us to significantly reduce our debt profile and remain focused on growth
through our dollar denominated businesses. We will continue to maintain 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),
which are responsible for almost 50% of the 42 TCF that will be delivered by the seven CGDPs by 2020.”


CEO Axxela Limited, Bolaji Osunsanya added: “As we position to become the preferred and fast-growing
gas and power portfolio across sub-Saharan Africa, we pay homage to our origins, legacy, and storied
history as an Oando portfolio company. We are immensely proud of our impressive track record of building
substantial gas and power infrastructure across Nigeria, and implementing essential Corporate Social
Responsibility initiatives in our host communities. As we commence a new journey, our audacious growth
initiatives across Nigeria and the sub-region will leverage our industry expertise, experience, and longevity;
while our affiliation as a full-fledged Helios company will improve our access to capital. The continued
growth, robustness, and stability of our business enterprise, enables Axxela provide required efficient and
environmentally-friendly energy solutions for industrial and commercial clients, leading to positive socio-
economic impact in our markets of operation.”


About Axxela Limited:


Axxela Limited (“Axxela”) was, prior to the divestment, the midstream affiliate of Oando PLC (formerly
known as Oando Gas & Power). Axxela is a designated natural gas shipper on the West African Gas
Pipeline (WAGP). Axxela is also the 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. With over 280km in gas pipeline infrastructure built,
Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas
Network Services Limited, and Central Horizon Gas Company Limited.




For further information, please contact:


Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com




Alero Balogun
Head, Corporate Communications
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, ext. 6761
albalogun@oandoplc.com
For Oando PLC


Ayotola Jagun
Chief Compliance Officer & Company Secretary


Nigeria
5 April 2019
Sponsor: Sasfin Capital (a member of the Sasfin Group)

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