Tony Elumelu’s $500m Stakes In Seplat Now Over $1bn As Energy Firm’s Valuation Rises

FUNSHO AROGUNDADE

Seplat Energy Plc, Nigeria’s leading indigenous energy company, has seen its market capitalisation rise to $5.24 billion, with the stake held by billionaire investor, Mr. Tony O. Elumelu-led Heirs Holdings now valued at over $1 billion.

Heirs Holdings, the investment vehicle of Elumelu, became Seplat’s largest shareholder in December 2025.

It acquired a 20.07% stake, 120.4 million shares, from French energy group Maurel & Prom for approximately $500 million.

Based on Seplat’s current share price of N11,200.60 on the Nigerian Exchange, NGX, and £6.47 on the London Stock Exchange, LSE, the Heirs Holdings stake is now valued at about $1 billion, more than double the original investment in less than eight months.

The $500 million acquisition came shortly after Seplat completed the purchase of Mobil Producing Nigeria Unlimited, MPNU, one of the biggest transactions in Nigeria’s energy sector.

Within the first trading week of 2026, Seplat’s share price rose 6.2% to a new 52-week high.

From N5,809 at the end of 2025, the stock climbed above N9,000 by March.

By April 14, Seplat became the first stock on the NGX to cross the N10,000-per-share mark, closing at N10,450 with a year-to-date gain of almost 80%.

The stock has since traded above N11,000 and is up more than 90% in 2026.

For Heirs Holdings, the 120.4 million shares bought for about $500 million are now valued at more than $1 billion at current market prices.

Analysts say the share price rally has been supported by improved business performance following the MPNU acquisition, which transformed Seplat from a largely onshore producer into a larger company with significant offshore operations.

Seplat’s 2025 full-year results reflected the first full year of the enlarged business with:

Revenue: Up 144% to $2.73 billion

Adjusted EBITDA: Up 137% to $1.28 billion

Operating cash flow: Up 276% to $1.17 billion

Net debt: Down 25% to $673.3 million

The company also increased its total dividend for 2025 by 52% to 25 cents per share.

In the first half of the year, Seplat reported N2.50 trillion in revenue. Profit before tax rose 74% to N790.4 billion, while profit after tax increased from N42.5 billion a year earlier to N225.5 billion.

The balance sheet also strengthened.

Interest-bearing borrowings declined from about N1.44 trillion at the end of 2025 to N1.11 trillion by June, while cash increased to N598.3 billion.

Average working-interest production reached 139,509 barrels of oil equivalent per day, boepd, in H1 2026, compared with 134,492 boepd a year earlier.

Offshore assets contributed more than half of total production, while natural gas liquids production more than doubled to 8,459 barrels per day.

For context, average production jumped to 131,506 boepd in 2025 from 52,947 boepd in 2024, following the first full year of offshore consolidation after MPNU.

Elumelu joined the Seplat board in January 2026 and is expected to become Chairman from January 1, 2027.

As the company’s largest shareholder, his expanded role is expected to provide closer alignment between ownership and long-term strategy. Elumelu has a track record of long-term investments in companies such as UBA and Transcorp.

The movement from a roughly $500 million investment to a stake worth more than $1 billion reflects changing market expectations around Seplat.

More importantly, the company’s improved earnings, cash flow, and lower leverage suggest the valuation rerating is increasingly backed by business performance.

Going forward, the value of the Heirs investment will continue to depend on Seplat’s ability to sustain production, manage costs, and convert its enlarged asset base into consistent shareholder returns.