₦airaland Forum

Heirs Energies Limited, owned by Nigerian businessman Tony Elumelu, has acquired a 20.07 percent equity stake in Seplat Energy Plc from French energy firm Maurel & Prom in a transaction valued at approximately $500 million, making it the single largest shareholder in the company.

The acquisition, which strengthens indigenous participation in Nigeria’s energy sector, involves the purchase of the entire Maurel & Prom holding in Seplat Energy and was supported by two major African financial institutions, Afreximbank and the Africa Finance Corporation (AFC).

The deal comes just one week after Heirs Energies secured a $750 million financing facility from Afreximbank to support its ongoing operations and expansion plans, positioning the company to execute large scale transactions across the energy value chain.

With the completion of the transaction, Heirs Energies further consolidates its footprint in Nigeria’s oil and gas sector. Seplat Energy currently produces about 286 thousand barrels of oil equivalent per day (kboepd), while Heirs Energies produces approximately 70 kboepd.

In[b] total, the combined daily production capacity of both companies stands at about 356 kboepd, comprising roughly 266 thousand barrels of oil per day (kbopd) and about 490 million cubic feet of gas per day (mmcfd).
[/b]
The acquisition also deepens Tony Elumelu’s influence across Nigeria’s energy landscape. His power generation companies, Transcorp Power in Delta State and TransAfam Power in Rivers State, account for about 17 percent of Nigeria’s electricity supply, while the Abuja Electricity Distribution Company (AEDC) services a 126,000 square kilometre area covering Abuja, Kogi, Nasarawa and Niger states.

A prominent advocate of African led development, Elumelu has consistently emphasised the need for Africans to take ownership of strategic assets, reinforcing his long-held belief that “No One But Us Will Fix Africa.”

obajoey:
The rich are getting richer. Aspire and study their pattern to get there.

treesun:
Tony Elumelu’s Heirs Energies buys Maurel & Prom’s Seplat stake in a landmark $500 million, Africa-backed energy transaction.



https://www.arise.tv/heirs-energies-acquires-20-07-stake-in-seplat-energy-in-500-million-deal-becomes-largest-shareholder/

grandstar:
These last minute deals before the new year seems to be to avoid the 30% capital gains tax that goes into effect tomorrow.

That 30% is way to high. I would have urged 20% at most. It is currently 10%.

The corporate tax at 25% is also high. I haven't even included the withholding tax of 10%

The OECD countries (rich nations club) has an average corporate tax rate of 23.5%. If the government truly wants to encourage Foreign Direct Invest, it should nothing higher than 19.5%.

Manufacturing Association of Nigeria said it should be 20%.

treesun:
Tony Elumelu’s Heirs Energies buys Maurel & Prom’s Seplat stake in a landmark $500 million, Africa-backed energy transaction.



https://www.arise.tv/heirs-energies-acquires-20-07-stake-in-seplat-energy-in-500-million-deal-becomes-largest-shareholder/

grandstar:
These last minute deals before the new year seems to be to avoid the 30% capital gains tax that goes into effect tomorrow.

That 30% is way to high. I would have urged 20% at most. It is currently 10%.

The corporate tax at 25% is also high. I haven't even included the withholding tax of 10%

The OECD countries (rich nations club) has an average corporate tax rate of 23.5%. If the government truly wants to encourage Foreign Direct Invest, it should nothing higher than 19.5%.

Manufacturing Association of Nigeria said it should be 20%.

easzypeaszy:
God abeg ooo Me too want to buy Seplat/ Dangote Grp dis Jan
Please God bless me wt money

chukkystar:
He still has no say in the company just a minority shareholder. Political move to improve Nigeria and France's relationship.

grandstar:
These last minute deals before the new year seems to be to avoid the 30% capital gains tax that goes into effect tomorrow.

That 30% is way to high. I would have urged 20% at most. It is currently 10%.

The corporate tax at 25% is also high. I haven't even included the withholding tax of 10%

The OECD countries (rich nations club) has an average corporate tax rate of 23.5%. If the government truly wants to encourage Foreign Direct Invest, it should nothing higher than 19.5%.

Manufacturing Association of Nigeria said it should be 20%.

Gboss247:
Why are Nigerians are always interested in foreign investors when they forex illiquid?
How long are we going to sustain foreign investors with borrowed loans?

grandstar:
These last minute deals before the new year seems to be to avoid the 30% capital gains tax that goes into effect tomorrow.

That 30% is way to high. I would have urged 20% at most. It is currently 10%.

The corporate tax at 25% is also high. I haven't even included the withholding tax of 10%

The OECD countries (rich nations club) has an average corporate tax rate of 23.5%. If the government truly wants to encourage Foreign Direct Invest, it should nothing higher than 19.5%.

Manufacturing Association of Nigeria said it should be 20%.

grandstar:
What you're saying is incomprehensible!

What relationship does foreign investment and loans have in common?

Gboss247:
The forex they repatriate home are majorly loans borrowed loans borrowed by the federal government.

grandstar:
That is very incorrect.

There are two types of foreign investment into a country:
[b]
1. Foreign Direct Investment

That is when foreign investment is used to set up factories, set up companies, purchase companies and more.

Foreign direct investment (FDI) is a substantial, long-term investment made by a company or government into a foreign project or firm.

Key Takeaways
Foreign direct investment (FDI) is a substantial, lasting investment made by an investor, company, or government into a foreign concern.
FDI investors typically take controlling positions in foreign firms or joint ventures and are actively involved in their management.
The investment may involve acquiring a source of materials, expanding a company’s footprint, or developing a multinational presence.

2. Foreign Portfolio Investment

Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors outside of their domestic market. It does not provide the investor with direct ownership of a company's assets and is relatively liquid, depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies.[/b]

First of all, I only mentioned Foreign Direct Investment. That is not the same as portfolio investment.

The vast majority of Nigeria's foreign reserves are not made up of foreign loans.

Gboss247:
What is incorrect about my comment?
Foreign Direct Investment and Foreign Portfolio Investment is actually the same thing. Buy shares of companies in Nigeria with dollars, repatriate dollars back home. Majority of these dollars are borrowed to fulfill such obligations.

grandstar:
Oga, you don't know what you're talking about. They are clearly different.