Helios retains a 75 percent interest in the
company.
This transaction marks Sojitz’s first
significant equity investment in Africa, indicating its growth ambitions on the
continent and serving as a blueprint for future collaboration in Africa between
Helios and Sojitz across a range of sectors, Axxela said in a release.
Sojitz is expected to bring to bear
expertise in developing gas and power infrastructure projects and providing
lower-carbon energy solutions to industrial customers globally.
“This transaction demonstrates the value of
our strategy to build market-leading, strategically important businesses which
become highly sought-after by global investors seeking to enter Africa or grow
their presence on the continent,” said Ogbemi Ofuya, Partner at Helios
Investment Partners.
Axxela Group is an energy infrastructure
company which began operations in 2001 and currently serves over 200 industrial
customers across key industrial hubs in Lagos, Port Harcourt, and Sagamu
providing a comprehensive energy offering across pipeline gas, compressed
natural gas (CNG) and liquefied natural gas (LNG).
It also supplies gas to power utilities and
industries across the West Africa region, taking advantage of its status as a
designated shipper on the West African Gas Pipeline (WAGP), a regional gas
pipeline spanning across Benin, Togo and Ghana.
The press statement indicated that Sojitz
is a global energy player, with deep expertise in the gas and power
infrastructure sector, where it has been involved in the development of gas
distribution networks, LNG terminals and power plants globally.
Under Sojitz’s “Medium-Term Management Plan
2023”, the company aims to adopt a market-oriented initiative in growth
industries and in accordance with the plan, has developed a downstream gas
business in Vietnam. This know-how will enhance the Axxela Group’s operation
and growth and ultimately aim to provide multiple energy solutions meeting
individual customer’s requirements while contributing to CO2 reduction.
Masakazu Hashimoto, COO of Infrastructure
& Healthcare Division at Sojitz Corporation, commented: “We are pleased to
announce this strategic investment into the Axxela Group, which opens the door
for our entry to a gas downstream market in Africa where huge growth potential
is expected. Africa is the largest frontier in the 21st century.
“This transaction embodies our
“market-oriented initiative” and “co-creation and sharing methodologies” and
begins a partnership between the internationally reputable fund Helios and
Sojitz. We expect that this collaboration will create additional value to
Axxela and their stakeholders by way of a disciplined investment while ESG
issues are fully addressed.”
Bolaji Osunsanya, CEO of Axxela Limited,
said “with Sojitz onboard, our capacity is stronger, and we are better situated
to attract the requisite capital to continue executing our development-oriented
projects.’’
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