Forte Oil shareholders okay divestment plans
The shareholders gave the approval at the company’s yearly general meeting held in Lagos at the weekend.
While notifying the Nigerian Stock Exchange (NSE) yesterday, the General Counsel of Forte Oil, Akin Olagbende, explained that the proceeds from the divestment would be used to fund the downstream marketing business.
The company said that the resolutions at the meeting was that: “Subject to the approval of regulatory authorities, the directors of the company be and hereby authorised to restructure the company by divesting its upstream services business (Forte Upstream Services Limited); its power generating business (Amperion Power Distribution Limited and its downstream business in Ghana (AP Oil & Gas Ghana Limited) at such time and such terms and condition as may be determined by directors of the company.”
However, there were mixed reactions from shareholders over the proposal before the meeting, though it was gathered that the directors gave further explained to the shareholders why the decision was taken.
According to the firm, the decision to focus on divests from upstream services and power-generating businesses will boost its distributable earnings for the benefit of shareholders.
Forte Oil noted that following the significant changes in the oil and gas industry in recent years, it believed that only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.
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