|
Listen now
Getting your Trinity Audio player ready...
|
Africa Capital Alliance (ACA), via its flagship private equity fund CAPE IV, has completed a full exit from Aradel Holdings Plc, marking one of the most significant divestments in Nigeria’s energy sector.
The transaction delivered a 3.4x return in USD terms and 17.10x in Naira after nearly a decade of investment in the indigenous upstream oil and gas firm, according to data from Meristem Securities.
Africa Capital Alliance sold its entire 15.93% stake in Aradel, representing 691.96 million shares, for N387.20bn at NGN559.50 per share.
A substantial portion of the shares was acquired by Petrolin Ocean, which added 173.79 million shares valued at N96.40bn, raising its holding from 8.11% to 12.11% and establishing it as Aradel’s largest shareholder.
“In our view, the transaction underscores the strong value-creation potential within Nigeria’s indigenous upstream sector, highlighting the attractiveness of long-term investment,” Meristem Securities analysts said in a note to clients.
“ACA’s divestment further injected liquidity into the Nigerian Exchange (NGX), reinforcing confidence in the energy sector’s investability. Additionally, we opine that ARADEL’s fundamentals remain solid, underpinned by resilient earnings, a diversified revenue base and a strong growth outlook.”
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
, via its flagship private equity fund CAPE IV, has completed a full exit from Aradel Holdings Plc){kind=link}