In a notice sent to the Nigerian Stock Exchange this week, major oil marketer Forte Oil Plc announced a notification of divestment by its majority shareholder, Femi Otedola.
According to the notice,
Femi Otedola has 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.
Reasons for the divestment
The notice also stated that Otedola’s move was due to his intentions to explore and maximize opportunities in refining and petrochemicals.
The company, however, stated that the notice was neither an offer to sell or a solicitation to buy any of the company’s shares.
Parties to the offer
Standard Chartered Bank, Corporate and Advisory Dubai and Olaniwun Ajayi served as financial advisers and legal advisers respectively to Femi Otedola.
Pricewaterhouse Coopers and Stanbic IBTC Capital Limited served as joint financial advisers to Ignite Investments and Commodities Limited, while Sefton Fross served as legal advisers.
Forte Oil closed at N31.25 on Monday’s trading session, up 9.84%
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.
