Last October, Mobil Nigeria Plc announced it had agreed a deal that will see NIPCO acquire about 60% of its shares from its majority shareholder, Exxon Mobil Oil Corporation (EMOC). At the time of the deal, the purchase consideration was not announced leaving analysts to speculate what the actual price could be.
Mobil Oil Plc has now issued a press release confirming that the purchase consideration for this deal is $310 million. This values Mobil at roughly $516 million and slightly higher than the $500 million valuation suggested in a Nairametrics article back in October 2016.
The valuation in Naira terms suggest Mobil is now valued at about N160 billion assuming N310 as exchange rate. At the time the deal was initially announced, Mobil was valued at under N50 billion.
Mobil also confirmed in the press release that NIPCO has filed formal application with the Security and Exchange Commission requesting authority to proceed with the acquisition.
Mobil had earlier confirmed that part of the deal will allow for a transitional management of both parties for the time being, meaning NIPCO will take-over sometime in 2017 assuming SEC approves the deal. We also understand that part of the deal will allow for a transitional management of both parties for the time being, meaning NIPCO will take-over sometime in 2017.
Nipco will also continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under Branding Licence (s) from Exxon Mobil
Both companies are said to have signed a Sale And Purchase Agreement and await regulatory approval from the Securities and Exchange Commission and the Nigerian Stock Exchange.
Mobil Oil Plc share price is up by about 71% since the deal was announced.
Here is the press release from Mobil.