Mobil Nigeria Plc has revealed that the transfer of its shares to NIPCO Plc will soon be completed. The Managing Director of NIPCO, Mr. Venkataraman Venkatapathy disclosed this during the week.
Mobil last year announced that its parent company ExxonMobil Oil Corporation, had agreed to sell 60% of its shares to Nipco investment Limited. The deal is said to be worth about $310 million, valuing Mobil at roughly $516 million. The valuation in Naira terms suggest Mobil is now valued at about N160 billion assuming N310 as exchange rate.
Mobil share priced closed on Friday at N275.99 with a market capitalization of about N99 billion. NIPCO as it stands is paying N60 billion more than it currently trades.
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