Table of Contents
Key Points
- Aradel Holdings obtains approval for $2.4 billion Shell divestment deal, paving the way for ownership transfer.
- The deal includes $1.3 billion direct payment and $1.1 billion in additional considerations, boosting Aradel's market standing.
- Ladi Jadesimi's leadership propels Aradel Holdings to N3.17 trillion ($2 billion) market cap, reshaping Nigeria’s energy future.
Aradel Holdings Plc, a leading Nigerian oil and gas company listed on the Nigerian Exchange (NGX) and chaired by Ladi Jadesimi, has secured ministerial consent for its $2.4 billion acquisition of The Shell Petroleum Development Company of Nigeria (SPDC).
Initially announced in January 2024, the acquisition sees Aradel's consortium—comprising Renaissance Africa Energy, ND Western, Aradel Energy, Petrolin Group, FIRST Exploration, and Waltersmith Group—gain full control of SPDC.
The deal is structured with a direct payment of $1.3 billion, alongside an additional $1.1 billion linked to receivables and cash balances to be settled upon completion. Approved by Nigeria's Minister of Petroleum Resources, this acquisition strengthens Aradel's market competitiveness and enhances its financial and operational capabilities.
Preserving operational excellence
The transaction has been designed to preserve SPDC’s operational integrity post-acquisition. SPDC's technical expertise, management systems, and workforce will remain in place during the transition. Existing staff will continue in their roles as Renaissance and its partners oversee operations.
Shell, in turn, will retain an advisory role, particularly regarding the management of SPDC JV facilities, which play a vital role in supplying feed gas for Nigeria LNG (NLNG), a key component of the nation's energy infrastructure.
Legacy of expansion under Ladi Jadesimi
Founded in 1992 as Niger Delta Exploration & Production Plc, Aradel Holdings has evolved into a fully integrated energy conglomerate with diverse oil and gas assets, including a modular refinery.
Under the leadership of Ladi Jadesimi, the company has expanded its reach not only in energy but also in finance and real estate. Recently, Aradel acquired a 5.14 percent stake in Chappal Energies Mauritius Limited, further consolidating its position in Nigeria’s energy sector.
The company’s market capitalization recently surged to N3.17 trillion ($2 billion) following the listing of 4.34 billion shares at a price of N702.69 ($0.43) per share. This latest acquisition underscores Aradel Holdings’ ambition to reshape Nigeria’s energy future while capitalizing on opportunities that foster sustainable growth and robust returns.
