NIPCO completes N90b acquisition of stake in Mobil Nigeria
Following necessary regulatory approvals, NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, in a trade executed on the floor of the Nigerian Stock Exchange (NSE) at the weekend, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc, in a deal worth N90 billion.
CORDROS Securities Limited acted as the execution stockbroker to both ExxonMobil and NIPCO for the transaction.According to NIPCO, its acquisition of the majority stake in Mobil is a significant breakthrough that will bolster investors’ confidence and appetite in the sector, following the deregulation of the Federal Government of Nigeria in the downstream petroleum industry.
Furthermore, the firm explained that this strategic move will ensure the continuous growth and expansion of its Nigerian retail footprint, increase efficiency gains as well as add tremendous value to the downstream sector.
NIPCO, (previously called IPMAN Petroleum Marketing Company Limited), was incorporated on January 8, 2001, as an indigenous oil and gas company operating in the downstream sector.
ExxonMobil Oil Corporation (EMOC) evolved from a regional marketer of kerosene in the United States, to the largest publicly traded petroleum and petrochemical enterprise in the world. EMOC operates in most countries in the world and is best known by its familiar brand names: Exxon, Esso, and Mobil.
NIPCO is required by the Investment and Securities Act (ISA), to make a takeover bid to all minority shareholders of Mobil Oil Nigeria Plc, having acquired 60 per cent of Mobil shares.
NIPCO’s Board has applied to the Securities and Exchange Commission (SEC) for a takeover bid of minority shareholders stake in Mobil Oil, and has received SEC’s ‘Authority to Proceed’ with the takeover bid at the same price of N417.12 the acquisition was carried out. MOBIL shares currently trade at N300/per share in the stock market, this is a 40 per cent premium to existing shareholders.
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