Ardova Plc has issued N25.3 billion fixed-rate bonds to fund its expansion project in the downstream petroleum sector of the Nigerian economy
The bond which is under its N60 billion debt issuance programme will come in handy in the funding of its new acquisition, Enyo Retail and Supply Limited which it has just fully taken over. Ardova Plc in June commenced the process of acquiring Enyo, a technology-driven fuels retailing company, following the execution of a share purchase agreement by the parties.
The bonds were issued in two tranches with the first being N11.444billion 7-year at 13.3 per cent and the second being N13.86billion 10-year at 13.65 per cent.
Its Company Secretary and General Counsel, Oladeinde Nelson-Cole explained that the bonds would be listed on the FMDQ Securities Exchange Limited, while Vetiva Capital Management Limited and Stanbic IBTC Capital Limited would serve as Joint Issuing Houses.
The bonds have the FMDQ Securities Exchange Limited. Vetiva Capital Management Limited and Stanbic IBTC Capital Limited acted as joint issuing houses, while Banwo & Ighodalo is the transaction counsel, is duly registered with the Securities and Exchange Commission (SEC). The trustees were Aluko & Oyebode.”
Commenting on the transaction, the CEO of the Company, Olumide Adeosun said that the company was pleased with the successful conclusion of this transaction which had demonstrated investors’ confidence, adding that it would provide additional resources for the company to continue its expansion projects.
On the acquisition of Enyo retail outlets, Adeosun said the successful conclusion of the transaction would provide significant synergies for Ardova that will combine Enyo’s retail outlets and the company’s retail operations.
He added that the acquisition would strengthen the quality of earnings for the company, noting that it was another step towards its broader vision of becoming the leading brand in the downstream petroleum sector.
The Company Secretary, Oladeinde Nelson-Cole, explained that both parties met all conditions on the acquisition that was completed through a wholly-owned subsidiary of the company, Bags and Kegs Limited, and with effect from today, Enyo is now a wholly-owned subsidiary of the company.
Stanbic IBTC Capital Limited and Banwo & Ighodalo advised Ardova while Rand Merchant Bank and Herbert Smith Freehills Paris LLP acted as financial and legal advisers respectively to Enyo.
https://insidebusiness.ng/176444/ardova-issues-n25-3bn-bonds-completes-enyos-acquisition/
