Connect with us

Hot News

Abdulwasiu Sowami’s Ardova finalizes acquisition of Nigeria’s largest downstream oil group

Ardova is now Nigeria’s largest indigenous publicly-listed downstream energy group.

Published

on

Nigerian businessman Abdulwasiu Sowami. ©Billionaires.Africa

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).

Hot News

Abu Dhabi-based Chimera acquires controlling stake in financial services provider linked to Egypt’s richest family

It is unclear how much of the 59.22 percent stake held by Orascom Financial Holding, a firm led by the billionaire Sawiris family, was acquired during the transaction.

Published

on

Egyptian billionaire Naguib Sawiris

Chimera Investment, an Abu Dhabi-based firm led by Pakistani businessman Syed Basar Shueb, has announced the purchase of a majority stake in Beltone Financial Holding SAE, a Cairo-based financial services firm partially owned by Egypt’s richest family, the Sawiris.

According to a press release issued by the Abu Dhabi-based firm, a total of 55.9 percent of Beltone’s shareholding was acquired at a price of EGP1.485 ($0.0779) per share, bringing the total transaction value to EGP370 million ($19.3 million).

It is unclear how much of the 59.22-percent stake held by Orascom Financial Holding, a firm led by the Egyptian billionaire Sawiris family, was acquired during the share-purchase transaction. However, it is clear that Chimera is now the majority shareholder in Beltone as a result of the recent deal.

Syed Basar Shueb, chairman of Chimera Investment, commented on the transaction, stating that it aligns with Chimera’s broader strategy of long-term value creation investments and expands the company’s presence in regional economies.

He went on to state that, in the coming months, the Abu Dhabi-based firm will look to unlock value and implement an all-encompassing transformation plan aimed at restoring Beltone’s growth and profitability.

In addition to the transaction, Dalia Khorshid, the chairwoman and CEO of MASAR Financial Advisory, a regional financial advisory firm, was appointed as the new CEO of Beltone, as the Egyptian firm enters a new phase of growth under new management.

“I am honored by the opportunity to lead Beltone’s strategic transformation plan,” Khorshid said in response to her recent appointment as CEO. “I am confident that we will restructure and grow this institution to become a major market leader in the region and a solid platform for attracting international investments into our host markets.”

Beltone, a financial services provider in Egypt and the Middle East and North Africa, was founded in 2006 to provide brokerage, investment banking, asset management, equity research, and a variety of non-banking financial services like leasing, consumer finance, and venture capital platforms.

In a $1.3-million deal nearly a year ago, Orascom Financial Holding, led by Egypt’s Sawiris family, reduced its stake in Beltone to 59.22 from 61.24 percent.

Continue Reading

Hot News

Ardova dismisses winding-up order, as Femi Otedola’s Zenon serves majority shareholder petition over $6-million debt

The once promising relationship between Otedola’s Zenon and Abdulwasiu Sowami’s Prudent Energy has taken a new turn.

Published

on

Femi Otedola. ©Billionaires.Africa

Arodva Plc, a Nigerian oil and gas marketing company majority owned by Nigerian businessman Abdulwasiu Sowami, has denied reports that it is facing a winding-up petition over a $6-million debt owed to Zenon Petroleum & Gas Limited, an oil company founded by billionaire businessman Femi Otedola.

The news comes as the once promising relationship between Otedola’s Zenon and Sowami’s Prudent Energy, Ardova’s majority shareholder, takes a new turn over the debt.

The oil company stated in a press release on Tuesday that its management’s attention has been drawn to recent media claims regarding the debt, and it is critical to set the record straight that no winding-up petitions are presently facing the company in relation to the 2019 transaction.

The company went on to state that the current issues are related to claims and warranties made under a share-purchase agreement between Prudent Energy and Zenon for the purchase of shares in Forte Oil Plc in a $200-million deal in 2019.

The management went on to state that Ardova is not party to any of the proceedings, that the proceedings have no bearing on the company’s rights or operations, and that it has no claims against its assets.

Zenon, which has a guarantee for the prompt payment of the debt, served Prudent Energy with a petition earlier this week, more than a month after the deferred consideration, which was due on June 18, had yet to be paid despite demand letters sent to Sowami.

Experts believe that the dispute will reignite debate over Ardova’s share ownership structure.

The $6-million debt, which represents the remaining purchase consideration for the Forte Oil stake, adds to Prudent Energy’s pressures, as shares in Ardova, the company that it acquired nearly three years ago, have fallen significantly from an average price of N23.6 ($0.055) per share in 2019 to N13 ($0.0305) per share at the time of writing this report.

Continue Reading

Hot News

Nigerian billionaire Abdul Samad Rabiu and son receive $151.6 million in dividends from food business

Just three weeks ago, the Nigerian billionaire received a massive $208-million dividend from BUA Cement.

Published

on

Abdul Samad Rabiu. ©Billionaires.Africa

Nigerian billionaire industrialist Abdul Samad Rabiu and his son received a N62.9-billion ($151.6 million) dividend from his stake in BUA Foods Plc, his newly consolidated food conglomerate that maintains active operations in the food and agro-allied industries.

This comes nearly three weeks after the billionaire received a massive N86.5-billion ($208 million) dividend from his cement company, BUA Cement Plc, as part of cash rewards paid to shareholders.

The $151.6-million dividend, which was electronically deposited into his bank account on Thurs., Aug. 4, represents the majority of the N152-billion ($63 million) final dividend distribution approved by BUA Cement shareholders at the group’s annual general meeting.

With the recent payout from his consolidated food business, Rabiu, who has a $5.8-billion net worth, has now received a total dividend of $359.6 million from his publicly traded businesses this year, which is significantly more than the $157 million that he received last year.

BUA Foods’ multimillion-dollar dividend is the company’s first dividend payment since its shares were listed earlier this year on Jan. 5. The cash reward that shareholders received can be attributed to the company’s stellar performance during its 2021 fiscal year.

According to the group’s financial statement, which represents its first annual report since its shares were listed on the Nigerian Exchange over three months ago, BUA Foods’ profit rose by 97.05 percent, from N35.41 billion ($85.2 million) in 2020 to N69.76 billion ($167.84 million) in 2021.

Despite a decrease in its fortified sugar sales, BUA Foods reported a 13.72-percent increase in profit in the first half of 2022, owing to an 11.3-percent increase in revenue from N151.73 billion ($364.4 million) to N168.85 billion ($405.5 million).

Revenue growth was driven by higher non-fortified sugar and flour sales, which offset lower fortified sugar sales during the period under review.

Continue Reading

Trending