Friday, 2 December 2011

Nigeria: Seven Energy seeking investors

Seven Energy is seeking finance by divesting some of its shares. The indigenous company is headed by Philip Ihenacho, a British/Nigerian lawyer with interests in the finance sector. Ihenacho co-founded Afrinvest West Africa (AWA), which is also up for sale, and is also the co-founder of Amaya Capital Partners.

Seven Energy is offering a total of 73,302 units of its shares, in lots of 30,000 units and an odd lot of 3,302 units, by way of a private placement. The offer price is $350 per unit, with a 1 per cent placement fee. A special purpose vehicle, AFP Hydrocarbon Investment, has been set up for the divestment.

According to Seven Energy, the divestment represents an opportunity for investors to gain exposure to the Nigerian oil and gas industry. Earlier in the year, Seven's subsidiary Septa Energy acquired a lucrative strategic alliance agreement for the 55 per cent interest that the Nigerian National Petroleum Corporation (NNPC) assigned to its subsidiary, the Nigerian Petroleum Development Company (NPDC), for two oil blocks previously owned and operated by Shell and its partners Eni and Total .

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

© 2011 Menas Associates

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