Century Petroleum has confirmed that it has entered into a binding letter of agreement with Ibeto Cement Company Limited.
In the agreement which outlines the proposed terms and conditions pursuant to which Century Petroleum Corp and Ibeto Cement Company Limited will effect a business combination that will result in a reverse merger of Century Petroleum by the shareholders of Ibeto Cement Company Limited.
A reverse merger also called reverse takeover or reverse IPO is another way for a private company to go public. It’s typically through a simpler, shorter, and less expensive process than that of a conventional initial public offering (IPO)
The private company buys enough shares to control a publicly traded company. The private company’s shareholders then use its shares in the private company to exchange for shares in the public company.
According to reports by Nasdaq, with the signing of the letter of agreement, Chief Cletus Ibeto, the billionaire owner of the Ibeto Group, has acquired 70% stake in Century Petroleum Corp. While, Mandla J. Gwadiso, the newly appointed Chairman and CEO of Century Petroleum Corp has stepped down and Dr. Cletus M. Ibeto has been appointed as the new Chairman of the Board.
Terms of the transaction include:
- Change of name by Century Petroleum Corp to a name requested by Ibeto Cement Company Limited and acceptable to applicable regulatory authorities.
- Consolidation of its outstanding Century Petroleum Shares on a basis to be determined.
- Replacement of all directors and officers of the Company on the closing of the Proposed Transaction with nominees of Ibeto Cement Company Limited.
- Create a new class of non-participating super-voting shares that would be issued to the founder of Ibeto Cement Company Limited, Dr. Cletus M. Ibeto, under the Proposed Transaction.
Reacting to the new development, Kent Clark, Chairman of Palewater Global Management Inc which is the parent company of Century Petroleum Corp noted that the reverse merger is a vital step in becoming a vibrant public company and is a key element of its growth strategy.
What this means for Ibeto
Recall that Ibeto Cement Group recently announced the signing of a Milost Equity Subscription Agreement (MESA) with Milost Global Inc. The binding agreement is for an $850 million financing, of which $500 million is in equity and $350 million debt.
Cletus Ibeto, Chairman Ibeto Group, revealed the company’s plan to grow beyond West Africa through the acquisition of other profitable cement businesses outside Nigeria within the next 12 months, leveraging on the development of its two new cement plants.
Ibeto Cement Company Limited, is a privately held company incorporated under Nigerian law, is one of the most dominant players in the fast-growing cement industry in Nigeria and, by extension, Africa. It is currently developing two cement plants in Nigeria: one in Ebonyi State and one in Cross River State/Abia State.
Century Petroleum Corp. was incorporated on December 13, 2004, as an oil and gas exploration and production company. The Company is engaged in the acquisition and exploration of oil and gas properties with a view to exploiting any oil and gas reserves it discovers.