By Adedapo Adesanya
A Nigerian energy company, Aradel Holdings Plc, has assured its shareholders of “enormous benefits” for the acquisition of an undisclosed equity interest in Shell Petroleum Development Company of Nigeria (SPDC) Limited SPDC.
Shell on Tuesday announced that it had reached an agreement to sell its Nigerian onshore subsidiary to Renaissance, a consortium of five companies made up of four exploration and production companies and one international firm, for $2.4 billion.
One of the exploration and production companies is Aradel Holdings Plc, which was formerly known as Niger Delta Exploration and Production (NDEP) Plc.
In a statement on the NASD Over-the-Counter (OTC) Securities Exchange, where its stocks are traded, the company said the acquisition is premised on the signing of a landmark transaction between Renaissance Africa Energy Company Limited and Shell to acquire its 100 per cent shareholding in SPDC.
The statement said Renaissance is owned by ND Western Limited, Aradel Energy Limited, Petrolin Group, First Exploration and Petroleum Development Company Limited, and the Waltersmith Group, each with demonstrable and proven operational capabilities.
“This acquisition marks a significant milestone for Aradel, which will bring enormous benefits to its shareholders, further strengthen its financial outlook, and consolidate its strategic positioning in the Nigerian energy market.
“Aradel is committed to working in partnership with all the stakeholders in Renaissance and the SPDC Joint Venture to ensure a smooth transition and drive continued growth and success in Nigeria and beyond,” the notice said.
The deal is, however, not concluded as it is subject to meeting conditions precedent, and regulatory approvals.
Speaking on the acquisition, Aradel’s Chief Executive Officer/Managing Director, Mr Adegbite Falade, said: “This successful acquisition represents a key step in our journey to becoming a leading energy Company in Africa and aligns with our long-term strategic growth plans.
“It also demonstrates our commitment to our “3R” Strategy of Resilience, Robustness, and Redundancy.”
The news has seen an uptick in the share price of the company on the NASD OTC Securities Exchange which has recorded a Year-to-Date (YTD) increase of 38.4 per cent. As of press time, the company’s stock is selling for N1,507.22 per unit.