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Court sanctions Seplat’s acquisition of Eland Oil and Gas 

The latest development concerning Seplat’s acquisition of Eland Oil & Gas is that a Court has sanctioned the scheme of arrangement.

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The latest development concerning Seplat’s acquisition of Eland Oil & Gas is that a Court has sanctioned the scheme of arrangement. This happened on Thursday, December 12th according to a public disclosure that was sent to the Nigerian Stock Exchange.

This is a good development for the acquisition process, which was initially met with a major glitch, after a firm, Starcrest Nigeria Energy Ltd, raised some red flags exactly one month after the acquisition was announced on October 15th.

“Eland and Seplat are pleased to announce that the Scheme was sanctioned by the Court earlier today. The Scheme will become effective upon the Court Order being delivered to the Registrar of Companies, which is expected to take place on 17 December 2019.”

Court sanctions Seplat’s acquisition of Eland Oil and Gas 

Eland Oil and Gas

What you need to know: Please, note that according to the Companies Act (2006), asset acquisitions of this magnitude must be sanctioned by a court before it can be finalised. The court sanction must follow the necessary approvals that must be given by the majority of stakeholders in the companies concerned.

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Earlier in November, the concerned shareholders in both Seplat Petroleum Development Company Plc and Eland Oil & Gas met during a court-ordered meeting and reportedly approved the scheme of acquisition.

(READ MORE: Seplat reacts to negative newspaper publication on new CEO appointment)

Recall that Nairametrics reported Seplat’s bid to acquire the entire issued ordinary shares in Eland Oil & Gas, an independent exploration company that was founded in 2009 and “listed on AIM, the London Stock Exchange’s growth market.”

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What is next? Once again, the scheme of acquisition will not become effective until the Court Order is delivered to the Registrar of Companies. This is expected sometime next week, December 17th to be precise. In the meantime, the following should be expected as well:

  • On December 16th, there will be an immediate suspension of trading on the shares of Eland Oil and Gas.
  • December 16th will also be the last day for anyone to register to transfer Eland shares
  • Admission to trade Eland shares on AIM will be cancelled on December 18th starting from 7 am.
  • The issuance of scheme shares in view of court sanction starts today December 13th.

To read the entire public disclosure, click here.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Economy & Politics

PIB and Electoral Amendment Bill pass second reading in House of Reps

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The Petroleum Industry Bill (PIB) and the Electoral Act Amendment Bill has passed second reading in the House of Representatives.

This was disclosed by Channels TV on Tuesday after both bills were addressed by Lawmakers for the second time during plenary.

On the Petroleum Industry Bill

Rep leader, Alhassan Doguwa, said the PIB has been in the pipeline since the firth assembly and hopes the 9th Assembly would be able to pass the bill.

Chairman of the House Committee on  Upstream Petroleum, Musa Adar, stated that Nigeria needs the PIB, as it does not have the luxury to be irresponsible with resources. Citing the effects of the pandemic on the economy, he added that Nigeria’s needs a mature oil industry that will maximize productivity and compete with other crude oil and gas exporting nations in the continent.

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Minority Leader, Ndudi Elumelu, said the PIB is a necessity, as the world is going green and Nigeria needs to maximize its oil and gas sector, and also explore other options.

The world is looking to go green in less than 20 years and it makes it pertinent for Nigeria to gain maximally from the oil sector and look to explore other oil products before petroleum goes obsolete as a commodity,” he said.

(READ MORE: The new PIB may scrap DPR, PPRA, others)

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On the Electoral Act Amendment Bill

The purpose of the Bill is to regulate the Electoral process across Federal and Local government levels, in order to give it more transparency.

The bill was sponsored by Rep. Aishatu Dukku (APC-Gombe). She added that the bill is necessary to fix Nigeria’s flawed electoral system. 

“This amendment has become necessary because of the flaws observed in our electoral system. It’s no longer news that our electoral experiences since 1999 show a strong correlation between an efficient and effective electoral legal framework and the conduct of free, fair, and credible elections.

“In fact, amendments of our electoral laws were long identified as priority legislation by the National Assembly, because of the need to consolidate on the gains of our democratic achievements and to also address the lacuna identified in the electoral legal framework.

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“A typical example is the case of the Kogi Governorship election in 2016, where a leading candidate died after the commencement of polls, but before the declaration of results.

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“In addition to this are concerns that the legal framework on certain issues should be well settled ahead of the 2023 elections, such as the use of technological devices like the card reader and electronic voting system.

“Also, criteria for substitution of candidates, disclosure of the source of funds contributed to political parties, replacement of lost or destroyed permanent voters card, the penalty for the possession of fake voters’ card, dates for conducting primary elections, shall not be earlier than 150 days and not later than 120 days before the date of the election, etc.

“The bill, therefore, seeks to address many loopholes in our electoral system by way of amending over 300 clauses (including new provisions) of the Electoral Act 2010,” she said.

What you should know 

Nairametrics reported last week that the Minister of State for Petroleum Resources, Timipreye Sylva said the Petroleum Industry Bill (PIB) may be passed into law by the first quarter of 2021.

“There is no better way of diversifying the country’s economy than through a well-developed oil and gas industry, particularly with the huge gas resources in Nigeria. So, PIB will be the most credible attempt towards a holistic diversification of the Nigerian economy,” he added.

House of Representative Speaker, Femi Gbajabiamila, also disclosed that the House would ensure that it passes the Petroleum Industry Bill within the next six months or probably less.

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ENDSARS

#EndSARS: States affected by violence should get 1% VAT – Senate

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The Nigerian Senate has urged the Federal Government to give states that were affected by lootings and destruction by hoodlums after the anti-police brutality protests,  1% of all Value Added Tax (VAT).

This motion was moved by Senators Abiodun Olujimi and Gershom Bassey on Tuesday and disclosed in a report by Channels TV.

What you should know 

After the lootings and destruction by hoodlums who hijacked the #EndSARS protests, Nairametrics reported that the Speaker of the House of Representatives, Femi Gbajabiamila, said Lagos State will need about N1 trillion for the reconstruction and repair of the properties and infrastructure that was vandalized in the process.

The Senators moving the motion declared that destruction caused in Lagos by hoodlums was valued at a range of over N1 trillion by the State Governor, Babajide Sanwo-Olu.

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(READ MORE: #EndSARS: Insurance firms can seek refund after indemnifying victims – MD, NICON Insurance)

Senator Gershom Bassey also revealed that hoodlums attacked federal properties in Calabar like the WAEC office and looted food warehouses in the state.

“Cross River State being a predominantly Civil Service State may not overcome the effects of the invasion since the destroyed state infrastructure were built from lean state resources over the years,” Bassey disclosed.

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Senator Sani Musa said the lootings which started in Lagos spread to other states, leading to the destruction of properties and urged for the FG’s assistance.

“#EndSARS came as a peaceful protest, but turned violent. It started in Lagos and later spread to other states which led to the destruction of homes, businesses, and government offices. It is very unfortunate. The government needs to rebuild what was destroyed and pay compensation as well. It is their responsibility,” Musa said.

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Economy & Politics

Budget proposal review of MDAs is a legislative right – Femi Gbajabiamila

Gbajabiamila has stated that the budget review on MDAs conducted by the House of Assembly is a right of the National Assembly.

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The Speaker of the House of Representatives, Femi Gbajabiamila, stated that the budget review on MDAs conducted by the House of Assembly is a right of the National Assembly. He added that the House of Assembly has the constitutional right to ask questions on MDA budgets.

The speaker disclosed this on Tuesday during the plenary session of the House in Abuja. The House spent most of last week grilling Ministers and Heads of MDAs over their budgets for the 2021 fiscal year.
The speaker said during the budget defence week, some MDAs Chief viewed the process as an “undue incursion”.
I have observed during the recent budget defence process that there are still some MDAs that consider the exercise of the legislative authority to review their budget proposals as an undue incursion into the management of their offices,” he said.
When the committees of the House of Representatives and the Senate convene to review the heads of expenditure contained in the Appropriation Bill, we do so in the exercise of clear and concise constitutional authority.”
He also added that budget review is an obligation of the House and that budgets need to be done on time.
It is in the best interest of our country that all parties concerned subject themselves to this process in good faith knowing that this too, is an obligation of service to our country. We will pass the budget, we will do it early and we will do it right,” he added.
The speaker revealed that the House has started process to review the Electoral Act in preparation for the 2023 elections.
“Perfecting the process through which we choose the people that will serve in government is an essential requirement for the continued development of our democracy.”

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