In a notice sent to the Nigerian Stock Exchange (NSE), Mobil Oil Nigeria has informed dealing members and the investing public of its change of name from Mobil Oil Nigeria to 11 Plc. The change of name will take effect on the Nigerian Stock Exchange (NSE) on Friday 11th August 2017.
Background to the name change
NIPCO Plc, had last year acquired a 60% stake in Mobil Oil Nigeria from Exxon Mobil of the USA in a deal valued at $300 million. NIPCO had indicated that the company would embark on a name change, excluding the Mobil brand of lubricants. NIPCO, had few months ago launched a Mandatory take Over (MTO) of shares held by minority owners.
Implications of the name change
Mobil will have to embark on a rebranding campaign that could cost it hundreds of millions. Mobil, a major petroleum marketer has over 200 stations which, would have to be repainted. In addition, the company may need to run a public relations campaign informing the public of the name change. Half year results by the company showed a massive decline in profit before tax due to a change in the company’s pension scheme. Mobil Oil Nigeria was incorporated as a private company in 1951, became a public limited liability company and was listed on the NSE in 1978. Mobil shares are currently trading at N226 on the NSE. Year to date, the shares are down 15.8%.