The company according to promoters is to participate in the indigenous Nigerian Exploration & Production (E&P) sector.
A release made available to Sunday Trust in Lagos indicated that the move by Afren was a “direct response to the Nigerian government’s objective to increase the level of local participation in the oil and gas sector and in line with the company’s strategy.”
It also noted that, Afren established FHN with the support of two leading Nigerian financial institutions, First City Monument Bank Plc (FCMB) and Guaranty Trust Bank Plc (GTBank).
FHN will be 40 per cent owned by Afren Nigeria Holdings Limited. Afren plc is wholly Nigerian subsidiary, while 60 per cent will be held in trust by FCMB Group and the GTBank Group, in anticipation of an offer of shares over time to the Nigerian public.
It said, “It will acquire substantial oil and gas assets in Nigeria, including stakes in assets currently under negotiation, assets that may become available that are currently held by international independents and by the joint ventures between the Nigerian government and International Oil Companies, and assets that may be divested in connection with indigenous licensing rounds. FHN will also investigate opportunities to acquire the assets of other Nigerian indigenous companies, as appropriate.”
Subject to market conditions, it was the intention that FHN would seek a listing on the Nigerian Stock Exchange in due course.
FHN has retained FCMB and GTBank as financial advisors in Nigeria and Morgan Stanley as international advisor, Deloitte & Touche as tax and audit advisor, and White & Case LLP as international legal advisor, to assist in its development.
