Helios Investment Partners LLP is set to acquire 49% of the voting rights in Oando’s midstream business subsidiary, Oando Gas and Power Limited for $115.8 million

The Oil and gas company will retain 49% of the voting rights while the residual 2% will be held by a local entity.

According to Tope Lawani, Co-founder and managing partner of Helios Investment Partners, “This transaction is consistent with Helios’ strategy of investing in businesses that provide cost-effective and reliable energy access solutions.’’

OGP is the pioneer developer of Nigeria’s foremost natural gas distribution network and has subsequently grown to become the largest private sector gas distributor in Nigeria, delivering at peak, 70 million standard cubic feet per day to over 175 industrial and commercial customers via its vast gas infrastructure network.

With over 260 kilometers in pipeline infrastructure built, OGP provides energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company.

Oando see the Helios deal as one that will support its continued growth to improve the reliability of gas supply to its numerous industrial customers.

“This strategic alliance will firmly leverage our local knowledge and expertise alongside Helios’ strong financial capabilities,” said Oando PLC Group Chief Executive, Adewale Tinubu. ”Through the optimization of our existing business operations and the expansion of our footprint, we will revolutionise the sector and position gas as a key driver for Nigeria’s economic empowerment. We look forward to completing the transaction, which will create a formidable leader of gas and power solutions in sub-Saharan Africa.”

The agreement is awaiting regulatory approvals and is subject to customary purchase price adjustments.