Helios Investment Partners has announced the sale of 25% of its stake in Axxela the largest private-sector gas distributor in Nigeria, to Sojitz. Helios retains a 75% interest in the company. Helios completed the acquisition of 100% of Axxela in 2019.
Axxela is a pioneering energy infrastructure company at the forefront of delivering cleaner, cheaper and more reliable energy to industrial customers across West Africa. Its operations support the utilisation of Nigeria’s vast domestic gas resource to drive industrial growth while also facilitating fuel switching by industries to gas, reducing CO2, Nitric Oxide and Sulfur Oxide emissions, which enables the transition to a lower-carbon economy. Axxela enabled its customers to reduce their CO2 emissions by 1.7 million tonnes between 2018 and 2020 by switching their energy supply from diesel or Heavy Fuel Oil (HFO) to gas and will expand such contribution to reducing CO2 emissions through the growth of its business.
Axxela Group 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.
This acquisition by Sojitz marks its first significant equity investment in Africa, indicating its growth ambitions on the continent. Sojitz Corporation is one of the leading conglomerate investment and trading houses listed on the Tokyo Stock Exchange.
Sojitz’s experience spans several industries including energy (gas, LNG, renewables, power, new clean energies including hydrogen), automotive, aerospace, agriculture, chemicals, consumer goods, healthcare, infrastructure and resources. As a global energy player, Sojitz possesses 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.
Ogbemi Ofuya, Partner at Helios Investment Partners, commented:
“We feel privileged to enter into this partnership with Sojitz to drive further growth of Axxela’s business. 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. Sojitz is a world-class energy infrastructure investor and their investment represents the first Japanese strategic investment in a downstream gas distribution business in Africa. We look forward to working together to accelerate energy access for industrial growth and decarbonisation across Africa.”
Masakazu Hashimoto, COO of the 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.”
Mr. Bolaji Osunsanya, CEO of Axxela Limited, commented:
“We are delighted to welcome Sojitz to the Axxela family. This represents another first for us as an organisation and a huge testament to continued investor confidence in our business. It also further affirms our position not only as a market leader but as a reputable partner enabling industrialisation across Africa. With Sojitz onboard, our capacity is stronger, and we are better situated to attract the requisite capital to continue executing our development-oriented projects.’’
