PwC advises Renaissance on acquisition of Shell Petroleum Development Company of Nigeria
PwC Nigeria has advised Renaissance and its shareholders on the execution of a share purchase agreement.
By PwC
PwC Nigeria is pleased to have advised Renaissance and its shareholders on the execution of a share purchase agreement to acquire the entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).
The PwC Nigeria Deals and Tax team’s holistic advisory support enabled Renaissance Africa Energy Company Limited (Renaissance) to be selected as the preferred bidder for the acquisition of the largest oil and gas company in Africa.
Renaissance overview
An SPV with shareholders consisting of four indigenous oil and gas companies and one international oil trading company.
Over 1,000 man-years of combined oil and gas experience.
Collective asset base value of over $3 billion.
Over 50 years of proven operational experience in the Niger Delta.
Twelve operational OMLs and two operational modular refineries.
Over 25 million man-hours of safety performance.
The mandate
PwC was awarded the buy side mandate to advise Renaissance on the acquisition of up to 100% shareholding in SPDC.
PwC acted as M&A / financial and tax advisor on all aspects of this landmark transaction. The consideration payable to Shell as part of the transaction is $1.3 billion. The buyer will make an additional cash payment of up to $1.1 billion, subject to regulatory approvals.
Our solution
PwC’s Deals team provided tailored financial advisory services to Renaissance involving buy-side financial advisory and due diligence. M&A support on the transaction included strategic advice, stakeholder engagement, structuring advice and project management. The due diligence services included financial, tax, human resources, and environmental, and social and governance.
The outcome
Given our industry knowledge, our PwC team was able to use the insights gained through the due diligence process to successfully advise Renaissance to be selected as the preferred bidder in a competitive process. The share purchase agreement (SPA) was signed on 15 January 2024. Following the successful delivery of the initial mandate, PwC has been engaged to provide post-SPA advisory services to the client during the transition phase to ensure business continuity after handover.
Find out more about the deal here: https://www.pwc.com/ng/en/services/advisory/transaction-services/deal-announcement.html