Helios Funding Companions has accomplished the sale of its 75% fairness curiosity in Axxela Restricted to BlueCore Gasoline InfraCo Restricted, a consortium of Nigerian and worldwide vitality gamers.
That is in line with a press release launched by Helios confirming the conclusion of the transaction in spite of everything regulatory and contractual circumstances had been met.
The deal additionally noticed Sojitz Company, which held the remaining 25%, train its tag-along rights to exit alongside Helios—marking a full possession transition to BlueCore.
What they’re saying
The transaction brings to a detailed Helios’ near-decade-long involvement in Axxela, which started with its 2016 acquisition of a majority stake from Oando Plc for $45 million.
Beneath Helios, Axxela has grown into a serious fuel and energy distributor in Nigeria, with infrastructure connecting industrial and industrial clients throughout Lagos and Ogun states, and lengthening its affect regionally.
- In response to Nitin Kaul, Accomplice at Helios, “We’re pleased with what Axxela has achieved beneath our possession. Bluecore is the precise companion to assist the Firm’s ambitions.”
- BlueCore’s Director, Dolu Olugbenjo, described Axxela as a “high-quality asset with robust fundamentals,” including that the brand new house owners plan to assist operational enlargement and contribute to the area’s vitality transition.
- Axxela’s CEO, Timothy Ononiwu, famous the transition represents a “robust validation of the worth and influence” constructed beneath Helios, expressing optimism concerning the firm’s future beneath BlueCore’s stewardship.
Extra context
BlueCore is backed by a strategic alliance comprising Afrigaz Energie LLP (a portfolio firm of Stanbic IBTC Infrastructure Fund), Levene Vitality Growth Restricted, emPERSAND Restricted, and Vitality & LLP.
- The group has demonstrated severe intent within the fuel infrastructure house, as evidenced by its current $285 million financing deal organized by Rand Service provider Bank (RMB), as beforehand reported by Nairametrics.
- With Helios and Sojitz’s full exit, BlueCore now assumes full management of Axxela, inserting it on the centre of Nigeria’s fuel commercialization technique.
- The acquisition is a part of a broader funding pattern in midstream fuel infrastructure, which is crucial to decreasing Nigeria’s vitality provide gaps.
Rand Service provider Bank acted as unique monetary advisor to Helios, with Latham & Watkins and Banwo & Ighodalo offering authorized counsel. BlueCore was suggested by DLA Piper Africa and Asafo & Co.
Why this sale issues
This sale marks some of the vital non-public fairness exits in Nigeria’s vitality house and displays the rising investor curiosity in fuel infrastructure as a strategic play in Africa’s vitality transition.
Axxela’s observe report of constructing pipeline networks and delivering fuel to over 180 industrial and industrial purchasers provides BlueCore a robust platform to scale and deepen regional attain.
For Helios, the exit supplies a notable near its involvement in Axxela, showcasing a profitable turnaround and worth creation story.
What you must know
- In 2019, Helios acquired its stake in Axxela from Oando Plc in 2016 for $45 million, as coated on this Nairametrics article.
- BlueCore not too long ago secured $285 million in financing to assist fuel infrastructure tasks in Nigeria.
- Axxela operates Nigeria’s first privately-owned fuel pipeline community and is licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as a Gasoline Transport and Distribution Firm.
- This deal highlights a broader pattern in Africa’s non-public fairness house the place infrastructure, significantly in vitality, is attracting long-term capital with sustainability objectives.
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