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Seplat settles dispute with Eland Oil stakeholders over acquisition

The issues arising from the acquisition of Eland Oil & Gas Plc by Seplat Petroleum Development Company Plc has been reportedly settled amicably.

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A B C Orjiako, Seplat settles misunderstanding with Eland Oil stakeholders over acquisition

The issues arising from the acquisition of Eland Oil & Gas Plc by Seplat Petroleum Development Company Plc has been reportedly settled amicably.

The Nation reported that stakeholders in Seplat, as well as some aggrieved stakeholders in Eland, have concluded talks, making the transaction acceptable to all stakeholders.

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The Backstory: The terms of agreement of the planned acquisition of Eland Oil and Gas by Seplat entailed Seplat paying 166 pence a share for Eland in a purchase valuing the London-traded company at about $484 million. Eland’s directors recommended that shareholders vote in favour of the deal, which represents a premium of 33% to the six-month average share price.

According to the agreement, any shareholder of Eland Oil & Gas, whose name appeared on the register as at close of business on Friday, October 18, would stand a chance of receiving and retaining the interim dividend, which the company had planned to pay on October 31, 2019.

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The Eland’s board of directors had signed an undertaking to that effect. However, one of the stakeholders, Starcrest Nigeria Energy Limited issued a warning on the proposed acquisition of Eland Oil and Gas Plc by Seplat Petroleum Development Company.

[READ MORE: Resort savings raises N4.3 billion, as Camey and Rock acquire majority shares]

Recall that Nairametrics had reported that Starcrest issued warnings stating that there were fundamental misrepresentations, or material omissions in representation, which were made to the market in general and to the respective shareholders.

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Resolutions: Nevertheless, the matter has been resolved as it was reported that Emeka Offor, the Chairman of Starcrest Nigeria Energy Limited; George Maxwell, CEO of Eland and Bryant Orjiako, Chairman of Seplat met in London to settle the stand-off. The outcome of the meeting is reportedly favourable to all the parties while the acquisition process would continue.

Also, the boards of Eland and Seplat have announced that all the proposed resolutions for the take-over were duly passed at the Court Meeting and the General Meeting held on November 20, 2019, by Eland and convened in relation to the proposed scheme.

Seplat Petroleum

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What you should know: The acquisition of Eland would boost Seplat’s production to 64,000 barrels of oil equivalent a day which would propel Seplat to become Nigeria’s biggest oil exploration and production company.

It represents a big boost to the Nigerian Local Content Act, which stipulates that Nigerian operators and indigenous service companies shall be given first consideration in award of oil blocks, licences and works in the sector.

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Patricia

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]

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Economy & Politics

Just in: Buhari suspends EFCC boss, Ibrahim Magu from office

The suspension follows the investigation of allegations of gross misconduct against him on Monday.

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EFCC to help AMCON recover bad debts

President Muhammadu Buhari has approved the suspension of the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, from office. The suspension follows the investigation of allegations of gross misconduct against him on Monday.

According to available information, Magu was suspended to allow for probe into allegations against him.

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The EFCC boss appeared before a presidential probe panel headed by retired Justice Ayo Salami, who is investigating the allegations against him.

Details later…

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Economy & Politics

Reps to investigate alleged illegal withdrawal of $1.05 billion from NLNG account

Gbajabiamila mandated the House to conduct a thorough investigation on activities of the dividends account.

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Reps to investigate alleged illegal withdrawal of $1.05 billion from NLNG account

The House of Representatives has concluded plans to investigate the alleged illegal withdrawal of $1.05 billion from Nigeria Liquefied Natural Gas (NLNG) account by the Nigeria National Petroleum Corporation (NNPC) without its knowledge and appropriation.

The decision by the lower chamber is on the heels of a unanimous adoption of a motion by the Minority Leader of the House, Ndudi Elumelu, during plenary session on Tuesday, July 7, 2020.

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Going down memory lane, Elumelu recalled that the NLNG was incorporated as a limited liability company in 1989 with the aim of producing liquefied natural gas and natural gas liquids for export purposes which began in 1999.

He pointed out that the NLNG is jointly owned by the Federal Government, represented by the NNPC with a shareholding of 49% and Shell Gas with 25.6%, Total LNG Nigeria Ltd with 15% and ENI International with 10.4%.

READ MORE: Nigeria’s debt rises to $79.5 billion, as debt to revenue ratio worsens

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The Minority leader said, “The dividends from the NLNG are supposed to be paid into the Consolidated Revenue Funds Account of the Federal Government and to be shared among the three tiers of government.’’

Going further in his motion, Elumelu said, “The NNPC who represents the government of Nigeria on the board of the NLNG had unilaterally without the required consultations with states and the mandatory appropriation from the National Assembly illegally tampered with the funds at the NLNG dividends account to the tune of 1.05 billion dollars thereby violating the nation’s appropriation law.

“There was no transparency in this extra-budgetary spending as only the Group Managing Director and the corporation’s Chief Financial Officer had the knowledge of how the 1.05 billion dollars was spent.’’

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‘’There are no records showing the audit and recovery of accrued funds from the NLNG by the Office of the Auditor General of the Federation. Hence the need for a thorough investigation of the activities on the NLNG dividends account.

In his ruling, the Speaker of the House, Femi Gbajabiamila, mandated the House Committee on Public Account to conduct a thorough investigation on activities that had taken place on the dividends account.

Gbajabiamila mandated the committee to invite the management of the NNPC as well as that of the NLNG in the process and report back to the house in four weeks.

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Coronavirus

COVID-19: We may recommend lockdown to ensure Nigeria’s safety – PTF

PTF on COVID-19 on Monday, Mustapha warned that the deadly virus is still spreading at an alarming rate.

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COVID-19: Reactions trail FG travel ban on 13 countries

The Secretary to the Federal Government and Chairman of the Presidential Task Force on COVID-19, Boss Mustapha, disclosed yesterday that the PTF will not shy away from the possibility of another lockdown, adding that the PTF will recommend it to the President who will make the final decisions.

While speaking during the national daily briefing by the Presidential Task Force (PTF) on COVID-19 on Monday, Mustapha warned that the deadly virus is still spreading at an alarming rate.

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“Therefore, we cannot afford to slow down and we must never compromise. Let us continue to learn from the history of pandemics by avoiding the mistakes of 1918.

“What happened in 1918 was very simple. During the Spanish Flu, it lasted for 2 years and in three waves, and during that period of time, 500 million people were infected, out of which they recorded fatalities of about 50 million persons. But the dangerous phase of the flu was the second phase,” Boss Mustapha said.

He added that the Spanish Flu lasted for 2 years of 1918 came in 3 waves, but the phase the most casualties were recorded was in the second phase. Adding that the impatience of people forced governments to lift lockdowns, and by the time the second wave arrived, millions died.

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READ MORE: FG may lift ban on interstate movement on June 21

He acknowledged that the possibility of lockdown would not be popular with Nigerians, however, “but what will happen in the preceding weeks will determine”, citing rising cases in the United States after the holiday weekend and a the newly imposed lockdown in Madagascar despite developing its “herbal cure”.

“I believe as the days and weeks ahead will present, we will not speculate what will happen in the future but we will do everything within our mandate to ensure the safety and protection of the people of Nigeria. If that will recommend a prescription of a lockdown, this task force will not shy away from its responsibilities.”

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He added that the recommendations of lockdown would be passed to President Buhari who will decide in the next 2 weeks.

“The PTF urged Nigerians to be vigilant, citing global developments in coronavirus in the past week from China to the United States.

“We urge that vigilance and care should be exhibited by all Nigerians irrespective of status. This virus does not discriminate and the PTF shall keep sustaining its sensitization messaging,” Mustapha stated.

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