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French oil and gas producer Etablissements Maurel and Prom said it has agreed to sell its entire 20.07% stake in Seplat Energy Plc, one of Nigeria’s best known independent energy companies, to Tony Elumelu's Heirs Energies Ltd for $496 million.
The company said the binding agreement was signed Tuesday, Dec. 30, after market close, covering 120.4 million Seplat shares. The price is 305 pence per share, Maurel and Prom said, a valuation that turns a long running strategic investment into a sizable cash exit at a time when dealmaking across Africa’s oil and gas sector is being reshaped by local capital.
Maurel and Prom said it will receive $248 million upfront, with the remaining balance payable within 30 days and secured by an irrevocable letter of credit. The agreement also includes a possible $10 million contingent payment tied to Seplat’s share price performance over the next six months.
The sale closes a chapter that began at Seplat’s founding. Maurel and Prom said it was one of Seplat’s three founders and its largest shareholder since the company’s inception in 2010, backing its expansion into a diversified oil and gas portfolio that has been central to Nigeria’s domestic energy supply.
Chief Executive Officer Olivier de Langavant said Maurel and Prom is proud of Seplat’s growth over the past 15 years and believes the timing is right to monetize the position. He said the proceeds will support a sharper focus on direct investments in oil and gas assets, in line with a growth strategy the company plans to accelerate.
Heirs Energies, the buyer, is described by Maurel and Prom as a subsidiary of Heirs Holdings, which it called a leading Pan African investment company. De Langavant said the group is confident Seplat will continue to thrive with another long term shareholder in place.
Herbert Smith Freehills Kramer acted as legal adviser to Maurel and Prom and Morgan Stanley served as financial adviser, the company said.
