The African Export-Import Bank (Afreximbank) has announced the disbursement of $975 million to partially support the acquisition of Oryx Energies SA by its management team. This move will enable the energy group to transition to majority African ownership for the first time. Oryx Energies SA, the holding company of Addax Energy SA, is a leading independent provider of energy products and services on the continent.
The acquisition marks a significant milestone in the history of Oryx Energies SA, which is involved in trading, distribution of petroleum products, and development of energy infrastructure in Africa. According to Afreximbank, this transaction represents a major step towards enhancing the security and sovereignty of the continent's energy sector. It also demonstrates the capacity of African financial institutions to mobilize substantial resources to support the development of strategic enterprises.
Afreximbank's financing aligns with its policy of supporting the African energy sector through investments in oil production, refining, and infrastructure. In this transaction, the bank acted as the sole lender, credit agent, guarantee trustee, and escrow agent. Moussa Diao, President and CEO of Oryx Energies SA, described the acquisition as a decisive step in the company's evolution, highlighting the strength of African leadership and its ability to drive well-established companies towards new opportunities.
Moussa Diao expressed gratitude to Afreximbank for its confidence and support, which were instrumental in completing the transaction. He emphasized the growing role of African financial institutions in the development of continental enterprises and confirmed the promising prospects of African energy markets. George Elombi, President of Afreximbank and its Board of Directors, noted that the acquisition aligns with the bank's mission to foster the structural transformation of African economies.
Elombi highlighted that the management buyout (MBO) of Oryx Energies SA's trading and distribution activities provides a strategic platform to deepen the African energy industrial ecosystem, enhance energy infrastructure, and derive greater value from the continent's abundant natural resources. Afreximbank expects this transaction to promote the emergence of African entrepreneurs, strengthen local competencies, and create jobs.
The acquisition not only represents a change in ownership but also reflects Afreximbank's commitment to promoting increased participation of African actors in the control and development of strategic enterprises on the continent. This move is expected to have a positive impact on the African energy sector, contributing to the continent's economic growth and development.
The successful completion of this transaction demonstrates the capabilities of African financial institutions to support large-scale economic operations. It also underscores the importance of collaboration between financial institutions and private sector players in driving growth and development in Africa. With this acquisition, Oryx Energies SA is poised to expand its activities in energy trading and infrastructure development across the continent.
Key points
- Afreximbank provides $975 million to support the acquisition of Oryx Energies SA by its management team.
- The acquisition marks a significant shift in the African energy sector, enabling Oryx Energies SA to transition to majority African ownership.
- The transaction is expected to promote the emergence of African entrepreneurs, strengthen local competencies, and create jobs.
