Forte Oil Plc, in a notice sent to the Nigerian Stock Exchange, has announced its intentions to hold an Extra Ordinary General Meeting (EGM) on the 7th of February, 2019.
According to the notice, the main agenda of the meeting is to obtain shareholders approval to enter discussions with Femi Otedola or any company representing him in connections with assets Forte Oil Plc intends divesting from.
The assets will, however, be subject to an independent valuation. In addition, the transaction will be carried out on an arms-length basis, and on commercial terms.
Assets in question
The assets in question are the company’s upstream, power and Ghanaian units.Forte Oil Plc in May last year, disclosed it had put up the assets in question, on sale.
The operations in Ghana had declared losses over the last three years and also had uncollectible trade debt due to tough economic conditions and a currency devaluation.
Forte Oil Plc owns 57% of Amperion Power Distribution Company Limited. While Amperion Power Distribution Company Limited owns 51% of Geregu Power Plc.
Prior to this
The company in December last year announced Otedola (its majority shareholder) had reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited to divest of his full 75% direct and indirect investment shareholding in the company’s downstream business.
The transaction is expected to close in the first quarter of 2019 subject to the satisfaction of various conditions and receipt of various regulatory approvals.
Forte Oil is currently trading at N28.80 in today’s trading session on the Nigerian Stock Exchange, unchanged from the prior day.
For the 9 months ended September 30, 2018, revenue increased from N68 billion in 2017 to N94.8 billion in 2018. The company made a profit before tax of N78 million compared to a loss of N626 million recorded in 2017.
Profit after tax (including discontinued operations) stood at N9 billion in 2018, compared to the N5.6 billion recorded in 2017.