Capital Alliance Private Equity IV Limited, a private equity fund sponsored by leading private equity firm African Capital Alliance Limited (“ACA”), has completed the full divestment of its approximately 16% equity stake in Aradel Holdings PLC (“Aradel” or “the Company”) following the Company’s successful listing on the Nigerian Exchange (“NGX”) in October 2024.
The transaction represents one of the largest secondary sale of shares in Nigeria’s energy sector and highlights another milestone for the Nigerian capital markets, demonstrating their growing ability to facilitate high value transactions in critical sectors of the economy.
Aradel remains well-positioned as one of Nigeria’s leading integrated indigenous energy companies. For the Company, the deal underscores its ability to create and sustain value for shareholders following its highly successful listing, while reaffirming the strength of its governance and operational track record. Aradel remains well-positioned as one of Nigeria’s leading integrated indigenous energy companies.
On ACA’s part, the success of the CAPE IV Aradel investment is a testament to ACA’s disciplined approach to capital deployment, active portfolio management and well-timed exit execution while creating long-term value for investees. ACA worked closely with Aradel’s board and management on strategic planning, operational discipline and positioning for capital markets access, culminating in the successful NGX listing and CAPE IV’s subsequent divestment.
Market observers note that the transaction also has broader significance for Nigeria by reassuring international investors of the credibility of Nigeria’s capital markets and reinforcing the vital role of indigenous companies in sustaining growth within various sectors.
This deal also aligns with prevailing global investment trends as the global energy transition agenda is driving a dual-track approach with long-term investors continuing to identify traditional energy assets as stable cash flow generators. Against this backdrop, Nigeria continues to present itself as a frontier where global and local capital can converge, with Aradel standing as a example of the sector’s enduring potential.
While CardinalStone Partners Limited and CardinalStone Securities Limited (“CardinalStone”) acted as the exclusive financial adviser and exclusive stockbroker respectively on the transaction, Aluko & Oyebode acted as legal adviser to CAPE IV.
