Nipco offers USD16 million to up stake in Mobil Oil to 70%

Nipco plc

After its acquisition of 60% stake of ExxonMobil’s shares in Mobil Oil Nigeria, Nipco Investment said it is offering to up its stake in Mobil Oil to 70%.

As part of the share acquisition, Mobil Oil’s minority shareholders are offered NGN417.12 per share for the 3.23% of the capital, or 11.6 million shares.

The offer is the same price Nipco paid ExxonMobil last year with a 75% premium to Wednesday’s market price of NGN238.36 per share.

It could be recalled that in 2016, Nipco offered to pay ExxonMobil a total of USD300 million for its 60% shareholding to be handed over to Nipco Investments Limited.

An email statement to the investment publics, signed by Adetunji Oyebanjo, CEO, Mobile Oil Nigeria revealed:

“Further to our communication of October 19, 2016, where we disclosed that ExxonMobil Oil Corporation (EMOC) our majority shareholder, had executed a sale and purchase agreement with Nipco Investments Limited for the acquisition of EMOC’s entire 60 percent equity ownership in Mobil Oil Nigeria Plc, We have received notice from EMOC that a formal application has been filed today by Nipco Investments Limited with the Securities and Exchange Commission for an “Authority to Proceed” with the acquisition.”

The document stated further: “In light of this filing, EMOC has consequently advised us of the following material commercial information relating to the proposed acquisition, which we would immediately like to furnish the Nigerian Stock Exchange and the market generally: the acquisition of EMOC’s 216,357,157 ordinary shares in Mobil Oil Nigeria Plc. will be for the consideration of $301,000,000.00 USD subject to price adjustments for dividends and other factors.”

ExxonMobil has gone ahead to focus in the upstream sector by divesting its interest from fuel retailing which constitutes the majority of its earlier operations before its exit.

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