Connect with us
nairametrics

Business News

Firm issues warning over Seplat Petroleum’s acquisition of Eland Oil & Gas 

Starcrest Nigeria Energy Limited has issued a stern warning on the acquisition of Eland Oil & Gas by Seplat Petroleum Development Plc. 

Published

on

Seplat commences $700 million gas plant construction, Vitol Energy transfers 4.63 million shares to Seplat , Seplat, Three more companies announce their closed period ahead of Q3 financial result , Seplat’s 9 months revenue dips by 11.5% according to latest earnings report, Earnings quality undermined by missed output, oil shocks, Firm issues warning over Seplat Petroleum’s acquisition of Eland Oil & Gas 

Following the announcement of the acquisition of Eland Oil & Gas by Seplat Petroleum Development Plc as notified on the Nigerian Stock Exchange (NSE) and reported by Nairametrics, a firm, Starcrest Nigeria Energy Limited has issued a stern warning.

Starcrest made known that misrepresentations or ommissions were made to the public by Seplat Petroleum and Eland Oil and Gas.

According to Starcrest Counsel, Ogochukwu Ifeoma Aniekwe, as seen on Yahoo Finance, the acquisition, which is based on Seplat Petroleum owning a 45% stake in an oil mining lease held by Eland Oil and Gas, is not true as Eland is not the operator of the license as portrayed to the general public.

Critics blame FG as Vitol quits oil fields acquisition

In a statement, Aniekwe disclosed that the 45% stake was instead, held by a Nigerian company, Elcrest Exploration and Production Company Limited. Elcrest, which should have been informed of the acquisition plans, was not duly informed of it.

GTBank 728 x 90

Aniekwe said that the operator of the license itself is The Nigerian Petroleum Development Company. The statement read:

 “In the absence of guarantees we have sought from the offeror since the announcement on, inter alia, the offeror’s subscription to the continued autonomy of Elcrest in accordance with Nigerian law, we are unable to guarantee the continued existence of Elcrest, and therefore of Elcrest’s entitlement to the stake in the License, if the Acquisition proceeds.

“The Nigerian Petroleum Development Company, a state-owned enterprise, is the holder of the majority 55% stake in the License and is the operator of the License. Neither the offeree nor Elcrest is the operator of the License.”

Deal book 300 x 250
GTBank 728 x 90

[READ MORE: Airtel to acquire additional spectrum for $70 million]

More details: Apparently, going by Starcrest’s claims, Eland Oil and Gas has no direct stake in the license supposedly acquired by Seplat Petroleum. According to the statement, Starcrest and Elcrest will take up the matter with legal advisers and relevant authorities in Nigeria and the United Kingdom.

“The offeree has no direct stake in the License. The offeree also has no direct entitlement, under Nigerian law, to the hydrocarbons produced from the License. The offeree is entitled to dividend from Elcrest in which the offeree is a minority shareholder but only if and whenever Elcrest declares dividend.

 “We are taking up the matters stated in this notice with the relevant authorities in Nigeria and the United Kingdom, and continuing consultation with our legal advisers on appropriate recourse,” Aniekwe stated.

The supposed terms of agreement as reported on Nairametrics include:

Jaiz bank ads
  • Every Eland Oil & Gas shareholder will receive 166 pence in cash per share.
  • The entire issued and yet to be issued ordinary share capital of Eland Oil & Gas has been valued at approximately £382 million.
  • On a fully diluted basis, this represents a premium of 28.5% to Eland’s closing share price of 129.2 pence on 14 October 2019.
  • It also represents “a premium of approximately 32.6% to the three-month volume-weighted average price per Eland Share as of 14 October 2019 of 125.2 pence.”
  • Any shareholder of Eland Oil & Gas whose name appears on the register as at close of business on Friday, October 18th, will stand a chance of receiving and retaining the interim dividend which the company is set to pay on October 31st, 2019.

[READ ALSO: DEAL: Visa to acquire 20% stake in Interswitch, valuing it at $1 billion]

Fidelity ads

About Starcrest Nigeria Energy Limited:  Starcrest Nigeria Energy Limited is an independent oil and gas exploration and production company focused on oil and gas exploration and production in Nigeria and the Gulf of Guinea region. The company, which is a member of the Chrome Group of companies, has interests in OPL 291 Nigeria and in Elcrest Exploration and Production Nigeria Limited.

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ENDSARS

House of Reps to make Youths globally competitive

House of Representatives is determined to make Youth globally competitive.

Published

on

Closing of Nigerian-owned shops in Ghana must be dealt with decisively - Femi Gbajabiamila, Lagos State needs N1 trillion for reconstruction - Femi Gbajabiamila
Lawmakers in the House of Representatives have assured Nigerian youths that they are committed to make them globally competitive.
This was disclosed by the Speaker of Nigeria’s House of Representatives, Femi Gbajabiamila, on Wednesday.
 In a tweet, which the speaker shared after a meeting with a group of young lawmakers under the aegis of ‘Young Parliamentarians Forum‘, he  reiterated that some of the demands of the youths following the #EndSARS protests would be addressed constitutionally, as part of the decision was to reform the Police, in a quest to accommodate a better Police Force.
On youth empowerment, the Speaker said that a lot still needs to be done, while pointing out that no government had done more than what the present administration has done.
What they are saying
He said, “All of us, every segment of the government, especially the House of Representatives, before the protests took the initiative, debated motions and took far-reaching decisions on the floor. We gave ourselves 30 days, and since then, we’ve been working night and day, especially with the Nigerian Bar Association (NBA).
“We thought the best way to go about it is that we amend the Police Service Commission Act, and that has been done and the report has been concluded and soon, it will be published and be on the floor.
“We are determined to resolve the Academic Staff Union of Universities (ASUU) matter, and if we can resolve two out of three issues, I think we would have gone a long way to help the lecturers who are on strike.
“There’s a bill on vocational education, I think from the 8th Assembly that was even my bill. We’ll pick it up again and pass it to you (Young Parliamentarians Group) to polish it up and add it to whatever ideas you have.”
While speaking on the giant strides by the current administration in terms of youth empowerment, the Speaker said:
“I make bold to say that no government, in Nigerian history from inception, and I stand to be corrected, has put in as much in youth empowerment as this present government.”

Facts don’t lie, a government that has devoted N500bn to youth empowerment every year. There’s Trader Moni, N-Power, and several others, they are all there,” he added.

Gbajabiamila added that the President Muhammadu Buhari’s administration has done a lot about youth empowerment and is ready to do more.

 


Continue Reading

Coronavirus

COVID-19: Ogun orders full reopening of churches, mosques, hotels

Religious centres and other public places have been reopened following the success recorded in flattening the curve of COVID-19.

Published

on

Coronavirus: Ogun State bans cinemas, night clubs, restaurants, other businesses from operating, COVID 19: Ogun State launches digital classes for students

The Ogun State Government has ordered the full reopening of churches, mosques, businesses, hotels, and entertainment centres across the state.

This was disclosed by the State Governor, Dapo Abiodun, in a statement signed by his Chief Press Secretary, Kunle Somorin, via the state’s Twitter handle on Wednesday.

Abiodun stated that the religious centres and other public places had been reopened, following the success recorded in flattening the curve of COVID-19.

According to him, the government is aware that many people are just recovering from the economic hardship imposed by COVID-19, as their activities had been affected by the lockdown, while necessary measures had been put in place to combat the pandemic.

He stated, “In the process of rebuilding the economy, the State Government was irrevocably committed to the successful implementation of the “Building our Future Together” agenda, and would ensure everything possible for people to have increased prosperity that would place the State on a sound footing towards continued development.

GTBank 728 x 90

“Government would improve on testing, just as it continues to monitor the development and not hesitate to do selective lockdown should there be any flagrant disobedience to the set COVID-19 protocols.”

What you should know

GTBank 728 x 90

Governor Abiodun had closed religious centres, businesses and schools in March, as part of moves to flatten the curve of the coronavirus.

He later announced the reopening of only worship centres and schools in August.

Abiodun pegged the number of worshippers for each service at 200, and insisted that services must not exceed one and a half hours.

Continue Reading

Financial Services

CBN reveals framework for the N75 billion Youth Investment Fund

The Nigerian Youth Investment Fund will be funded through the NIRSAL MFB window of the CBN.

Published

on

CBN reveals framework for the N75 billion Youth Investment Fund, Economic Growth, CBN, Governor, Emefiele, CBN releases new capital base, sanctions for Microfinance Banks, Nigerian Banks broadly positive after naira devaluation, Naira hits N465 to $1, Central Bank begins disbursing $100million to hit at currency speculators

The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund.

This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria.

The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion.

READ: #EndSARS: FG creates new N25 billion Youth Fund, to increase to N75 billion in 3 years

The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.

GTBank 728 x 90

Objectives of the scheme:

  •  Improve access to finance for youths and youth-owned enterprises for national development.
  •  Generate much-needed employment opportunities to curb youth restiveness.
  •  Boost the managerial capacity of the youths, and develop their potentials to become the future large corporate organizations.

Explore Data on the Nairametrics Research Website

What you should know
Recall that on the 22nd of July, 2020, the Federal Executive Council (FEC) approved the sum of N75 billion for the establishment of the Nigeria Youth Investment Fund for the period of 2020 – 2023.
The fund was created to support the innovative ideas, skills and talents of Nigerian youths, and to institutionally provide Nigerian youths with a special window for accessing much-needed funds, finances, business management skills and other inputs critical for sustainable enterprise development.
  • The fund targets young people between the ages of 18 and 35 years.
  • Beneficiaries of NMFB, TCF and AgSMEIS loans, and other government loan schemes that remain unpaid are also not eligible to participate.
  • Individuals (unregistered businesses) shall be determined based on activity/nature of projects subject to the maximum of N250,000.
  • Registered businesses (Business name, Limited Liability, Cooperative, Commodity Association) shall be determined by activity/nature of projects subject to the maximum of N3.0 million (including working capital).
  • The tenor of the intervention is for a Maximum of 5 years, depending on the nature of the business and the assets acquired, of which interest rate of not more than 5% under the intervention shall be charged annually.
  • The Federal Ministry of Youth and Sports Development (FMYSD) will collaborate with relevant stakeholders to identify potential training for training/mentoring.
  • The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to login to the portal provided by the NMFB to apply for the facility.

READ: CBN raises alarm over fraudulent loan offers, investment schemes with charged fees

GTBank 728 x 90
Optics
As a huge percentage of youths are engaged in the informal sector, the NYIF will facilitate the transition of informal enterprises owned by youths into the formal mainstream economy, where they can be supported comprehensively, build a bankable track record, and be accurately captured as active participants in economic development.

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
act markets
Advertisement
first bank
Advertisement
bitad
Advertisement
Stallion ads
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement