Oando, Nigeria’s indigenous energy group, listed on both the Nigerian and Johannesburg Stock Exchange, has announced a $210m recapitalization of its downstream operations by HV Investments II B.V., a joint venture owned by Helios Investment Partners and the Vitol Group.

As a result of this, a new company will be formed to hold interests in Oando Marketing, Oando Supply & Trading, Apapa SPM, and Oando Trippmart.

The service stations will retain the Oando brand.

The new company will be renamed OVH Energy (OVH) to reflect its ownership structure and the commitment of its new shareholders.

Oando will retain 49% shareholding in the newly formed corporate vehicle, with the consortium owning 49%, and the residual 2% owned by a local entity.

Wale Tinubu, Oando’s Group CEO, said: “Despite global economic headwinds, we have taken the proactive approach to establish a strategic partnership which will leverage Oando’s sector dominance, considerable local knowledge and expertise; together with HVI’s international, and technical capabilities.”

“This partnership will reinvigorate Nigeria’s downstream sector and create one of Africa’s largest downstream operations. We are extremely confident in the success and potential returns this alliance will deliver.”

Under the new business structure, the initial Board will consist of Wale Tinubu as the Chairman, Christian Chammas, CEO of Vivo Energy, and other Vitol and Helios representatives.

The current CEO, Yomi Awobokun, will continue in his role.

OVH’s assets will comprise over 350 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12 %.

Tope Lawani, Co-founder and Managing Partner of Helios Investment Partners, said: “We look forward to leveraging Helios’ expertise in support of OVH’s management team, and to building another partnership with Vitol, with whom we created Vivo Energy, a leading pan-African downstream business.”

Ian Taylor, President and CEO of Vitol, added: “This investment underlines our commitment to Nigeria. We are proud to have served our Nigerian customers for many years and we look forward to being actively involved in building this new company, alongside our existing ventures.”