Renowned Nigerian entrepreneur and philanthropist Tony Elumelu has strengthened his presence in Africa’s energy sector by becoming the largest shareholder in Seplat Energy Plc.

The acquisition was made through his investment firm, Heirs Holdings, and its subsidiary, Heirs Energies Ltd, which purchased a 20.07% stake from French oil company Etablissements Maurel & Prom S.A. (M&P) for $496 million.

The transaction, disclosed in a filing on the Nigerian Exchange, involves 120.4 million Seplat shares sold at 305 pence each. An initial payment of $248 million has already been made, with the remainder due within 30 days, backed by an irrevocable letter of credit.

The deal also includes a potential additional payment of up to $10 million, depending on Seplat’s share performance over the next six months.

M&P, one of Seplat’s founding shareholders, had held its stake since 2010 and played a key role in building the company into a major independent oil and gas player in Nigeria.

M&P’s CEO, Olivier de Langavant, expressed pride in the company’s growth under their ownership and said the sale allows M&P to focus on direct investments in oil and gas while ensuring Seplat has a strong long-term shareholder in Heirs Energies.
Following the announcement, Seplat’s shares surged 11% in London, while M&P’s shares rose 8% in Paris.

Legal and financial advisory for the deal was provided by Herbert Smith Freehills Kramer and Morgan Stanley.
Seplat Energy, listed on both the Nigerian and London stock exchanges, remains a critical contributor to Nigeria’s energy security with its diversified oil and gas operations.