Heirs Energies Acquires 20% Stake in Seplat Energy For $500 Million

Tony Elumelu’s Heirs Energies has acquired a 20.07% stake in Seplat Energy Plc from French oil and gas company Maurel & Prom (M&P) for $500 million, making it the single largest shareholder in the Nigerian independent energy company. The transaction marks a major shift in Seplat’s ownership structure and reflects the growing role of indigenous investors in Africa’s energy sector.
The deal, executed through the sale of 120.4 million shares at 305 pence per share, represents a 10.9% premium over Seplat’s current market price of 275 pence. An upfront payment of $248 million has been made, with the balance due within 30 days, backed by an irrevocable letter of credit.
An additional $10 million in contingent consideration may be paid depending on Seplat’s share price performance over the next six months.
Heirs Energies, a subsidiary of pan-African investment company Heirs Holdings, secured support for the transaction from two leading African financial institutions, Afreximbank and Africa Finance Corporation, demonstrating the continent’s capacity to finance large-scale energy deals.
This follows a $750 million financing arrangement Heirs Energies closed last week with Afreximbank to support its ongoing operations and expansion plans. With this financial backing, the company is well-positioned to execute transactions of this scale and further consolidate its presence in the Nigerian energy market.
Seplat Energy currently produces approximately 286,000 barrels of oil equivalent per day (kboepd), while Heirs Energies produces around 70 kboepd. The acquisition strengthens Heirs Energies’ operational footprint and influence within Nigeria’s upstream sector, positioning the company as a major player in the country’s oil and gas industry.
Analysts note that by acquiring a significant stake in Seplat, Heirs Energies gains greater oversight in operational decision-making, access to a larger production base, and the ability to influence strategic initiatives across both companies.
Commenting on the acquisition, Tony Elumelu, Chairman of Heirs Energies, said: “This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources. It is a long-term investment in Nigeria’s and Africa’s energy future and aligns with our mission to drive energy security, industrialisation, and shared prosperity.
“Seplat Energy has built a resilient, well-governed platform with compelling long-term prospects, and we are pleased to support its continued growth and value creation for all stakeholders.”
M&P, one of Seplat’s founding shareholders since 2010, held the largest single stake in the company and has been instrumental in its development. “Over the past 15 years, M&P has supported Seplat’s transformation into one of Nigeria’s top independent energy companies,” the company said. M&P’s CEO, Olivier de Langavant, added that the investment has delivered strong returns and that the sale allows M&P to focus on direct oil and gas asset investments in line with its accelerated growth strategy.
Legal and financial advisers to the deal were Herbert Smith Freehills and Morgan Stanley, respectively. The structured nature of the transaction, including the secured letter of credit, suggests a well-orchestrated transition and reflects careful planning by both parties.
Industry analysts say the acquisition is a landmark transaction for Nigeria’s energy sector, underscoring the growing capacity of indigenous companies to execute large-scale deals without reliance on international capital.
It also signals a shift in the country’s energy investment landscape, as founding foreign investors gradually exit to focus on asset-level growth, while local players like Heirs Energies consolidate positions in strategic assets.
The deal is expected to have broader implications for investor confidence, potentially spurring further strategic alliances and consolidation within the Nigerian oil and gas sector. With Heirs Energies stepping in as a long-term strategic shareholder, Seplat is well-positioned to continue its growth trajectory, enhance operational efficiency, and optimise production across its diversified oil and gas portfolio.
This acquisition further highlights Seplat’s continued attractiveness as a platform for long-term value creation in Nigeria’s energy sector. Analysts say the deal also reinforces the trend of African financial institutions playing a key role in funding significant corporate transactions, demonstrating that the continent has the resources and expertise to support large-scale investment in critical sectors.