Ardova Plc (AP) has been strategically positioning itself in the Nigerian downstream industry since it acquired Forte Oil in 2019. To that aim, the firm announced earlier this week that it had completed a deal to purchase a 100% ownership position in Enyo Retail and Supply Limited (ENYO) in a corporate disclosure to the Nigerian Exchange Limited (NGX).
According to AP, by acquiring Enyo, it would become Nigeria’s largest downstream energy firm, as it would add Enyo’s 95 existing stations to its existing portfolio of 450 stations in the country, bringing the combined group’s network to 545 stations.

The transaction is conditional on the fulfilment of agreed-upon closing conditions and regulatory approval. The acquisition of Enyo, according to the company, was a signal to both AP’s competition and the investing public of AP’s desire to become Nigeria’s top integrated energy firm.
Enyo has hired Rand Merchant Bank as its financial adviser and Herbert Smith Freehills Paris LLP as its legal counsel, while AP has hired Stanbic IBTC Capital Limited as its financial adviser and Banwo & Ighodalo as its legal adviser.

Chief Executive Officer of AP, Olumide Adeosun, said: “On completion, this acquisition will lead to a stronger downstream energy group that benefits from the increased customer reach and service delivery excellence of both companies, with the combination expected to produce stronger financial results.”

The company’s recent announcements of a deal to be the sole distributor of Shell lubricants, as well as significant investments in liquefied petroleum gas (LPG) through the construction of Nigeria’s largest LPG storage facility at Apapa and the deployment of LPG skids across its retail network, signal a company on its way through a transformational programme of investments outside of traditional white goods.
AP has increased its efficiency, lowered costs of capital, and restructured its balance sheet since the purchase in 2019 and rebranding in 2020 to generate a stronger runway for profitability.