French oil and gasoline producer Etablissements Maurel and Promenade stated it has agreed to promote its whole 20.07% stake in Seplat Vitality Plc, one in all Nigeria’s greatest identified unbiased power corporations, to Tony Elumelu’s Heirs Energies Ltd for $496 million.
The corporate stated the binding settlement was signed Tuesday, Dec. 30, after market shut, masking 120.4 million Seplat shares. The value is 305 pence per share, Maurel and Promenade stated, a valuation that turns an extended operating strategic funding into a large money exit at a time when dealmaking throughout Africa’s oil and gasoline sector is being reshaped by native capital.
Maurel and Promenade stated it would obtain $248 million upfront, with the remaining steadiness payable inside 30 days and secured by an irrevocable letter of credit score. The settlement additionally features a potential $10 million contingent cost tied to Seplat’s share worth efficiency over the following six months.
The sale closes a chapter that started at Seplat’s founding. Maurel and Promenade stated it was one in all Seplat’s three founders and its largest shareholder because the firm’s inception in 2010, backing its enlargement right into a diversified oil and gasoline portfolio that has been central to Nigeria’s home power provide.
Chief Government Officer Olivier de Langavant stated Maurel and Promenade is happy with Seplat’s development over the previous 15 years and believes the timing is true to monetize the place. He stated the proceeds will help a sharper deal with direct investments in oil and gasoline property, in keeping with a development technique the corporate plans to speed up.
Heirs Energies, the customer, is described by Maurel and Promenade as a subsidiary of Heirs Holdings, which it known as a number one Pan African funding firm. De Langavant stated the group is assured Seplat will proceed to thrive with one other long run shareholder in place.
Herbert Smith Freehills Kramer acted as authorized adviser to Maurel and Promenade and Morgan Stanley served as monetary adviser, the corporate stated.
