Dec 25 (Lagos) - Forte Oil Plc ( FO
) has notified the stock exchange, SEC, its shareholders and public that its majority shareholder Mr. Femi Otedola has reached an agreement to sell his 75% stake (direct and indirect) in the Company.
His stake will be bought by Prudent Energy Team, investing through Ignite Investments and Commodities ltd according to the announcement.
Transaction is expected to close in Q1 2019.
This is not a surprise as there were rumours of the majority shareholder seeking potential buyers from Nigeria and abroad.
The downstream industry is no longer as attractive as it used to be because of the upcoming refinery and Petrochemical plant in Ibeju-lekki which will transform the energy sector of Nigeria nad make downstream Companies potentially dependant upon the plant.
According to the Forte Oil announcement, Mr. Otedola's divestment from downstream business is "pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals".
Shars of FO
rose almost 10% on the announcement but this stock price is a far cry from the 2014 valuation that this Company acheived.
reporting for easykobo.com on Tuesday, Dec 25 2018 from Lagos, Nigeria
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