Nigeria’s leading indigenous and integrated energy group, Ardova Plc, has announced the finalization of its acquisition of a 100-percent stake in Enyo Retail & Supply Limited.
The acquisition, which adds Enyo’s 95 gas stations to Ardova’s existing portfolio of 450, makes the company Nigeria’s largest indigenous publicly-listed downstream energy group, with a total of 545 gas stations nationwide.
Enyo is a customer-focused, technology-driven fuels retailing company founded by Nigerian businessman Tunde Folawiyo in 2017.
It operates as an affiliate of Folawiyo Energy, a leading player in Nigeria’s oil and gas industry.
A statement issued by Ardova, which is led by Nigerian energy mogul Abdulwasiu Sowami, from its offices in Lagos, Nigeria, announced the completion of the transaction at a signing ceremony held to commemorate Enyo becoming a wholly-owned subsidiary of the group.
The deal is the actualization of a strategic decision taken by Ardova in January following an initial notice of an agreement in principle with Enyo’s shareholders to acquire the business.
The leading energy group explained that the acquisition, which will be funded under a N60-billion ($146 million) bond issuance program, will enable it to deliver more value through a well-diversified retail channel, as it moves to provide opportunities around digitalization.
Sowami, who chairs Ardova, said the acquisition aligns with the group’s objectives as it will drive the transformation to an integrated energy group primed to be the market leader in meeting the present fuel demands and future energy needs of the Nigerian economy.
“In the past two years, we have undertaken a transformation to an integrated energy company that is primed to be the market leader in meeting present fuels demands and future energy needs that will result from the imminent energy transition,” he said. “By acquiring Enyo, we are able to accelerate the pace of achieving these objectives.”
In a bid to fund the transaction and make cash available to cover operating activities and working capital requirements, Ardova announced the establishment of its N60-billion ($146 billion) bond issuance program.
Under the program, the group issued N11.444-billion ($27.8 million), seven-year, 13.3-percent fixed-rate bonds and N13.86-billion ($33.7 million), 10-year, 13.65-percent fixed-rate bonds.
As of press time, Nov. 17, shares in Ardova were trading at N13.95 ($0.03395), giving the group an N18.14-billion ($44.22 million) market capitalization.
In the first nine months of 2021, Ardova reported a 5.8-percent increase in its revenue to N136.1 billion ($331.3 million), while profit declined by 27.9 percent to N1.24 billion ($3.01 million).