Dangote confirms ADNOC, governments and other investors are interested in refinery stakes

Abu Dhabi National Oil Company and other strategic investors are seeking stakes in the Dangote Petroleum Refinery, according to Dangote Group Chief Executive Aliko Dangote. He declined to identify the potential investors or disclose the terms, citing non-disclosure agreements.

Dangote spoke to journalists in Lagos on Monday after a signing event linked to the refinery’s planned share offering. Asked whether ADNOC was among the investors, he said the company had agreements with several parties. “We have agreements with other people; it’s not only ADNOC, other people too. They are very, very interested,” he said.

“

We have agreements with other people; it’s not only ADNOC, other people too. They are very, very interested.

Dangote also said governments had invested in the refinery and were putting in more money. He described the level of investor interest as surprising, pointing to an earlier offer to private investors. The company sought $1 billion in that offer but received $3.7 billion in payments. It ultimately accepted $2.5 billion and returned $1.2 billion.

He said demand could be even stronger when the current offer opens to investors. Dangote rejected the idea that the offering was driven by temporary gains linked to the Middle East crisis, saying the company’s projections used normal market conditions before the crisis. “Our own basis of calculation is based on normal days,” he said. He added that if the offer remained open for only two days, he expected all the available shares to sell.

“

Our own basis of calculation is based on normal days.