Heirs Energies buys 20% of Seplat Energy in $500M Nigeria deal
Heirs Energies has purchased a 20% stake in Seplat Energy for $500 million, making it the company’s largest shareholder. The deal, valued at a 10.9% premium over Seplat’s current share price, marks a major shift in the firm’s ownership structure. Both companies operate in Nigeria’s energy sector, with Seplat producing around 286,000 barrels of oil equivalent per day.
The transaction involved Maurel & Prom (M&P) selling its entire 20.07% stake in Seplat Energy to Heirs Energies. An upfront payment of $248 million was made, with the remaining $248 million due within 30 days, secured by an irrevocable letter of credit. An additional $10 million in contingent consideration may also be paid.
M&P’s CEO, Olivier de Langavant, highlighted the company’s pride in supporting Seplat and the strong returns generated from the investment. Meanwhile, Tony Elumelu, Chairman of Heirs Energies, described the acquisition as a long-term commitment to Nigeria’s and Africa’s energy future.
The deal was backed by Afreximbank and Africa Finance Corporation, showcasing African institutions’ ability to finance major transactions. Legal advice was provided by Herbert Smith Freehills Kramer, while Morgan Stanley acted as financial adviser.
Last week, Heirs Energies secured a separate $750 million financing agreement with Afreximbank to fund its broader operations and expansion plans. The company currently produces around 70,000 barrels of oil equivalent per day, significantly less than Seplat’s output.
The acquisition strengthens Heirs Energies’ position in Nigeria’s energy sector while introducing a new long-term investor to Seplat Energy. The transaction was completed without public disclosure of a specific financing institution for the stake purchase. The remaining payments are expected to be settled within the agreed timeframe.
