CAIRO, Oct 28 – The African Export-Import Bank (Afreximbank) has disbursed $975 million to partly finance the management buyout of Oryx Energies SA, supporting a transaction intended to place the Africa-focused energy company’s trading and distribution business under majority African ownership.
The Cairo-based lender announced the financing on Wednesday, saying the facility would support the acquisition of Oryx Energies SA, the holding company of Addax Energy SA. A management team that includes Oryx Chief Executive Moussa Diao is buying out the business from its founder.
Oryx operates across several African markets, supplying and distributing petroleum products, including liquefied petroleum gas (LPG). The company is among the continent’s established independent providers of energy products and services.
Afreximbank said the transaction represents a significant step towards increasing African ownership of strategic energy businesses and strengthening the continent’s capacity to finance its own industrial development.
The bank acted as sole lender, facility agent, security trustee and escrow agent for the transaction. The $975 million facility will partly finance the buyout, although the total acquisition value was not disclosed in the announcement.
African ownership and energy security
The transaction comes as African governments and financial institutions seek to strengthen domestic participation in energy supply chains, expand infrastructure and retain a greater share of the economic value generated by the continent’s energy markets.
Oryx’s operations in petroleum trading and distribution provide a platform across multiple markets, including activities linked to the supply of fuels and LPG. Under the management buyout, the incoming ownership group intends to build on the company’s existing operations while pursuing further opportunities in energy trading and infrastructure development.
Moussa Diao, chief executive of Oryx Energies SA, said the transaction marked an important milestone for the business and reflected the experience of its management team.
“This management buy-out marks an important milestone in the history of Oryx Energies and the continuation of a journey that our management team has been part of for many years. It also reflects the strength of experienced African leadership and its ability to guide established businesses towards new opportunities.” Diao said.
“It provides an opportunity to build on the strong foundations of the business, drawing on our longstanding experience and deep understanding of African energy markets. Our ambition remains to strengthen our activities in energy trading and infrastructure development across Africa.” He added
Diao also credited Afreximbank’s support with helping make the transaction possible, describing the financing as a sign of confidence in both the management team and the opportunities available in African energy markets.
Afreximbank expands support for energy businesses
Afreximbank said the financing builds on its broader involvement in Africa’s energy sector, including support for upstream production and refining capacity. The bank has positioned its financing activities around enabling African businesses to expand operations, develop energy infrastructure and increase trade across the continent.
George Elombi, president and chairman of Afreximbank’s board of directors, said the acquisition aligned with the institution’s mandate to support structural economic transformation and greater local value creation.
“This transaction advances Afreximbank’s mandate to drive the structural transformation of African economies. Through the Management Buy-Out of Oryx Energies SA’s trading and distribution business, we have secured a strategic platform to deepen Africa’s energy industrial ecosystem, strengthen energy infrastructure and capture more value from the continent’s abundant natural resources. It will also promote greater African ownership and participation in development by empowering local entrepreneurs, expanding local value creation, building capacity, creating jobs and retaining more economic value on the continent.” Elombi said
The financing illustrates the role African development finance institutions can play in funding large corporate transactions involving established businesses operating across multiple markets.
For Oryx, the management buyout creates an opportunity to continue developing its trading and distribution operations under a new ownership structure. The extent to which the transaction translates into additional investment, expanded infrastructure and stronger energy supply will depend on the management team’s execution of its plans and the company’s performance across its markets.
