Nigerian Billionaire, Femi Otedola has completed his divestment from Forte Oil Plc after receiving full payment for the sale of the company to Prudent Energy Services Ltd. Mr. Otedola shared this on his Instagram Profile earlier today, confirming a deal that has been in the work for months.
View this post on Instagram
A few years ago, my team and I embarked on an arduous task of transforming a moribund petroleum marketing business, African Petroleum Plc (formerly British Petroleum) into Forte Oil Plc; a leading integrated solutions provider with solid footprints in downstream petroleum marketing, Upstream Services and Power Generation and one in which we built intrinsic value to the benefits of our shareholders. In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc. We wish our successors the very best and urge them to build on our legacies which have been established since 1964 🙏🏿 …F.Ote💲
What Next: With the deal closed, Femi Otedola will now focus on his flagship power asset, Geregu Power Plant which was not part of the deal.
- Forte Oil will now focus only on downstream and upstream under new ownership. Femi Otedola already updated his Instagram handle as Executive Chairman, Geregu Power Plant.
- The billionaire believes Power should be his next focus after operating in the downstream sector for over 20 years.
- With Power, Otedola believes he has the business that attracts high demand with less competition when compared to oil and gas.
- Under Forte Oil, Geregu Power has posted margins as high as 40% boosting the company’s operating income since its acquisition in 2013.
- Now that it has been spun off Forte Oil and owned by majorly by Femi Otedola, the asset will likely be his mainstay leaving him with a major role to play in Nigeria’s energy sector.
The share price of Forte Oil Plc has received a boost in the wake of the sale, opening at N32.30 per share at the Nigerian Stock Exchange yesterday up from its last week opening price of N25.75, signaling a 24.44% rise, an equivalent of N8.53 billion capital gains.
- This came barely one week after the Exchange endorsed the transfer of the 75% majority equity stake in the company from its Chairman, Femi Otedola, to Prudent Energy and Services Limited in a share purchase deal.
- The company’s share price also closed 10% up at the close of business on Wednesday 19th June 2019.
- Forte Oil had a market cap of N45 billion as the conclusion of the sale was announced.
Backstory: Nairametrics had last December reported that Forte Oil had notified the NSE of its principal shareholder’s intended divestment of his holding in the company, which was then expected to be consummated in Q1 2019. During this period, the company went through due diligence and other regulatory approvals subject to the conclusion of the transaction.
Details of the Deal: Prudent Energy will invest the 75% stake through Ignite Investments and Commodities Limited.
- Sefton Fross, a leading full-service indigenous law firm, is the advisor to the buyer while Stanbic IBTC Capital Limited and PriceWaterhouse Coopers are the Joint Financial Advisers.
- The deal would see a total of 982.97 million ordinary shares of 50 kobo each change hands. It is said that each unit of the shares would be divested at N66.01 with a total value of N64.89 billion.
- The transaction price of N66.01% represents about 104.4 per cent premium on Forte Oil’s opening share price at the NSE yesterday.
- Otedola had held the shares through direct and indirect shareholdings, the latter in the names of Zenon Petroleum and Gas Company Limited and Thames Investment Incorporated.
Reasons for the Divestment: Forte Oil has said that Otedola’s decision is premised on his desire to invest the proceeds in harnessing and maximising business opportunities in refining and petrochemicals. Interestingly, Otedola’s friend and business mogul, Aliko Dangote, is currently constructing a multibillion-dollar oil refinery and petrochemical plant in Lekki Free Zone, Lagos.
Earlier Development: In May 2018, Otedola had obtained the shareholders’ nod to divest the group’s upstream services and power generating businesses including downstream businesses in Ghana in a move aimed at concentrating Forte Oil’s operations on its Nigeria’s downstream marketing business.
Forte Oil, however, informed the NSE of the completion of this transaction and other plans to sell some of its other subsidiaries in a statement dated 3rd May, 2019 and signed by Akinleye Olagbende, it general counsel.
Only 68.8% of Nigerians believe Covid-19 is real – SBM Intel
The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.
As the country and indeed, the rest of the world continues to be ravaged by the pandemic, only 68.8% of Nigerians believe Covid-19 is real. While 39.9% of Nigerians say they will take the vaccine, 63.3% are opposed to another lockdown.
These and more details were disclosed by SBM Intel, a geopolitical research and strategic communications consulting firm in its recent Covid-19 report titled, ” Covid in Nigeria: The Second Wave”.
“The age demographics of the correspondents for the survey were chosen across a broad age category., “The majority of the respondents were between 28-40 years (36.7%) followed by those between 18-27 years (24.0%), then 41-55 years (22.2%) which represents the active (working) population. 9.5% of the respondents were older than 55 years, and a smaller percentage, 7.7% were younger than 18 years,” the report revealed.
If Corona is real…
- The survey revealed that 68.8% of Nigerians believe Corona is real, 14.4% are not sure while 16.7% don’t believe it’s real.
- Ekiti, Enugu, Kogi, Nasarawa, and Sokoto states had less than 50% of their respondents stating that the virus is real. These states have relatively low official death rates, Ekiti (7), Enugu (21), Kogi (2), Nasarawa (13) and Sokoto (20) compared to states with high death rates as Lagos (250), the FCT (106) and Edo (117).
An interviewee said: “The virus is real, but does not believe that it is present in Nigeria because people are not dying and they are not observing most of the precautions.”
- The report disclosed that most people of all age categories don’t deny the existence of a virus, however, people who are older than 55 years have the highest percentage of respondents who are unsure of the existence of coronavirus, citing reduced social interactions and smaller circles which keeps them away from contact with infected persons.
If people are taking the right steps to prevent the virus
Despite the fact that over 68% of the respondents believe that the virus is real, 59.5% of the respondents representing a majority of the respondents do not think that people are taking the right measures to prevent COVID-19.
- “More interestingly, in some public institutions like banks and eateries where private security personnel enforces compliance with mask-wearing and hand sanitizing, people tend to comply just because such enforcement serves as an entry ticket. Researchers observed that once many people got into such premises, they took off their masks and started to flout other precautionary measures.
- “Only 39.9% of the respondents said they will take the vaccine. An almost equal proportion of respondents (35.9 %) said they will not take the vaccine which the government announced is to arrive in the country at the end of January, and 24.1% are unsure of their position at the moment.
- Reasons for not wanting to receive the vaccine include mistrust with the government and religious beliefs.
- “Some respondents held that it is a religious war to contaminate the children of God with evil substances. Some believe that the vaccines are a tool to depopulate Nigeria, while others expressed concern about the effectiveness ratio and the side-effects that the vaccine might have,” SBM said.
In case of another lockdown
- 63.3% of Nigerians are opposed to another lockdown. The report cited the number is much lower than the past report which revealed 90.24% were opposed to the idea of another lockdown.
- 15.1% are on the fence on this issue and only 21.6% of the respondents would support another lockdown.
- Opposition to lockdowns was linked to economic and security impacts witnessed during the previous lockdown as the economy contracted to lead to unemployment and increased hardship for Nigerians.
What you should know
- Nairametrics reported that the Federal Government said that Nigeria is not contemplating another lockdown and urged Nigerians to ignore social media posts rumouring of the possibility of another lockdown.
- President Muhammadu Buhari already disclosed in October 2020 that the Nigerian economy is too fragile to go into another lockdown.
- Professor Julius Ihonvbere, Chairman, House Committee on Basic Education & Services, said the Federal and States governments should not impose a lockdown, but rather focus on serious control measures to help prevent the spread of the coronavirus.
COVID-19: FG to acquire vaccines that need less cooling
The FG has stated that it is in talks with Russia and India to procure vaccines that are less dependent on cooling facilities.
The Nigerian Government says it doesn’t plan to over-invest in Covid-19 vaccines that require extra cold storage and that it will prioritize vaccines that don’t require much cooling.
This was disclosed by Faisal Shuaib, National Primary Health Care Development Agency Chief in a briefing with newsmen on Tuesday reported by Reuters.
“Our plan now is not to over-invest on ultracold equipment for vaccines like that of Pfizer vaccines, but go for vaccines that need less cooling facilities.
“We are currently engaged in talks with Russia and India to get more vaccines,” he said.
What you should know
- Nairametrics reported earlier this month that the Federal Government stated that the National Primary Health Care Development Agency (NPHCDA) with its partners, is working to fix healthcare value chain roadblocks that may affect the fair distribution of Covid-19 vaccines.
- The FG also disclosed through the NPHCDA its initial distribution plan for vaccines with the highest share of vaccines going to Kano State 3,557; Lagos 3,131; Katsina 2,361; Kaduna 2,074; Bauchi 1,900; Oyo 1,848; Rivers 1,766; Jigawa 1,712; Niger 1,558; Ogun 1,473; Sokoto 1,468; Benue 1,423; Borno 1,416; Anambra 1,379; Zamfara 1,336; Delta 1,306.
Covid-19: Oxygen demand in Lagos State has risen 5 times – Sanwo-Olu
Governor Sanwo-Olu has lamented the rising second wave of the pandemic in Lagos as the demand for oxygen increases by 5 times.
The Lagos State Governor, Babajide Sanwo-Olu has warned that the rising second wave of the pandemic in Lagos has seen the demand for oxygen rise 5 times from 70 six-litre cylinders per day to 350 six-litre cylinders at Yaba Mainland Hospital alone.
The Governor also urged that all malaria-like symptoms should henceforth be considered as COVID-19 virus infection unless and until proven not to be so.
This was disclosed in a statement released by the Lagos State Government on Tuesday.
“Over the last few weeks, the demands for oxygen has risen from 70 six-litre cylinders per day to 350 six-litre cylinders in our Yaba Mainland Hospital. This is projected to more than double to 750 six-cylinders, before the end of January 2021,” the Governor said.
He added that the State Government has decentralized provision of oxygen and other services needed for Covid-19 patients, citing provision of oxygen kiosks.
“ln addition to providing oxygen at our isolation centres, the Lagos State Government has decentralized the availability of oxygen across the State through the provision of 10 oxygen and sampling kiosks. Oxygen therapy and other related services will be provided to patients that require them.
“Five of these 10 oxygen centers have been commissioned while the remaining five will be ready for use within the next four weeks. It is our expectation that these sampling kiosks would be easily accessible to residents that require oxygen therapy at the level of LGAs as stabilization points prior to onward transmission to our Isolation centres, if required.
“This strategy is to further increase the fighting chance of Lagos residents that have contracted the virus and require immediate oxygen therapy,” he stated.
The Governor said that Lagos is closely monitoring plans by the FG to acquire vaccines and said the State has also resumed discussion with potential manufacturers. He also said the State is building its own regulatory framework for vaccine distribution.
“We are closely monitoring ongoing action by the Federal Government to procure COVID-19 vaccines for use in Nigeria. We have also opened discussions with vaccine manufacturers so that when the vaccine comes eventually we can ensure that Lagosians are catered for.
“In the meantime, we are developing a strategy that will articulate the criteria, guidelines and regulatory framework for providing and monitoring vaccinations in Lagos.
“The Lagos State Government is actively partnering with the private sector in the management of the COVID-19 pandemic, in the areas of testing, oxygen deployment, as well as the clinical management of moderate to severe cases. These partnerships have helped enhance the State’s response to the ever-changing circumstances of the pandemic,” Sanwo-Olu added.
What you should know
- The Lagos State Government earlier disclosed that its bed occupancy levels at its public and private COVID-19 care centres increased to 51 per cent.
- The Federal Government also alerted Nigerians that hospitals across the country are running out of facilities to handle more serious cases of coronavirus infections as the virus is spreading fast with mild symptoms in some victims and severe illnesses and death in others.
- Nairametrics recently reported that the Federal Government, through the Ministry of Finance, announced the sum of N10 billion for the production of vaccines in Nigeria, to fight the coronavirus.