C&I Leasing completes 28% buyout of Petrotech JV
C&I Leasing Plc has concluded the buyout of 27.5% minority stake in C&I Petrotech Marine Ltd- a Joint Venture company with six vessels presently deployed to a long-term contract with Shell Petroleum Development Company of Nigeria (SPDC). The leasing and business service conglomerate and its partner had engaged Wizer Advisory as an independent advisor for the valuation of the shares, now resulting to C&I Petrotech Marine Limited being a fully owned subsidiary of C&I Leasing.
C&I Leasing Plc had recently recorded a successful N7 Billion bond issuance- the first series in a N20 Billion debt programme. The company had stated that the funds raised would largely be invested in business expansion and restructuring of the company’s debts over a period of five years among other initiatives, which will guarantee increased profit margins and returns to shareholders. The Managing Director of the Company, Andrew Otike-Odibi, explained that the buyout transaction of C&I Petrotech Marine Limited minority shareholders is evidence of C&I Leasing’s commitment to investing in its business growth and expansion.
“Our journey into the maritime sector as a service provider for the oil and gas sector actually started through the C&I Petrotech Marine Joint Venture in 2010 and has over the years culminated in the ownership of over twenty vessels, consisting of crew boats, pilot boats, tug boats, patrol boats and platform support vessels. “These provides services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms. “The completion clearly reiterates our commitment to growing our Marine service business and gaining leadership in the field”.
It is hoped that this buyout will further the company’s drive to restructure and reposition its marine business for enhanced profitability,” he said.
C&I Leasing has been in operation for over two decades and has since evolved from being a simple consumer finance leasing company licensed by the Central Bank of Nigeria in 1991, to becoming a diversified, leasing and business service conglomerate that provides support services to various indigenous and multinational organisations in West Africa.