(Bloomberg) – Nigerian tycoon Tony Elumelu’s company agreed to acquire a 20% stake in the nation’s biggest oil explorer by value to expand his energy business.
Elumelu’s Heirs Holdings Ltd. will purchase the stake in Seplat Energy Plc from France’s Etablissements Maurel & Prom SA for $496 million, the companies said in a statement on Wednesday. Seplat’s shares jumped 11% in London, while Maurel & Prom advanced 8% in Paris.
The latest acquisition will bolster Elumelu’s energy ambitions. The businessman founded Heirs in 2010 to invest in strategic sectors in the continent’s biggest oil exporter.
The deal “reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources,” Elumelu said in a statement. African Export-Import Bank and Africa Finance Corporation “supported” the transaction, according to the statement.
Seplat last year acquired Exxon Mobil Corp.’s local onshore and gas assets, while Heirs in 2021 bought bought Shell Plc’s assets.
Still, most Nigerian producers were losing the bulk their output because of theft and sabotage, although President Bola Tinubu has taken steps to boost security.
Maurel & Prom is selling its stake for 305 pence ($0.4) a share. Heirs will initially pay $248 million with the balance payable within 30 days, according to the statement.
Heirs raised $750 million in funding from Afreximbank to boost production, the company said in a statement on Dec. 22.
