Africa Capital Alliance’s (ACA) flagship fund, CAPE IV, has completed a full exit from Aradel Holdings Plc, realising a 3.4x return in dollars—or 17.1x in ₦—after nearly ten years of guiding one of Nigeria’s indigenous upstream oil companies.
On September 25, ACA sold its 15.93% stake, equivalent to 691.96 million shares, for ₦387.2 billion at ₦559.50 per share.
Notably, Petrolin Ocean acquired a large portion of these shares, increasing its stake from 8.11% to 12.11% and establishing itself as Aradel’s largest shareholder.
A Strategic Partnership
The story began in 2016 when ACA extended an $80 million loan facility at 6% per annum to Aradel, then Niger Delta Exploration & Production Plc.
Moreover, in 2018, ACA converted the loan into equity, gaining a 16.5% holding.
Over the next few years, Aradel expanded its asset base and listed on the Nigerian Exchange in October 2024, transforming ACA’s early investment into a significant return.
Shaping The Future
Shortly after the listing, ACA sold 0.57% of its stake to improve market liquidity.
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With the latest divestment, ACA has fully realised ₦406.95 billion ($272 million), marking one of the most remarkable exits in Nigeria’s energy sector.
Meanwhile, Petrolin’s increased stake positions it to influence Aradel’s next growth phase.
Ultimately, the transaction demonstrates value creation in Nigeria’s upstream sector and reflects shifting shareholder dynamics.
Aradel currently trades at ₦560 per share, despite a 6.35% year-to-date decline.
