Following the successful acquisition of 60 per cent equity stake of Mobil Oil Nigeria Plc by Nipco Investment Limited (NIL)Â from ExxonMobil Oil Corporation, the company has applied to regulators to acquire additional shares from minority shareholders.
The financial transaction, which is being handled by Cordros Capital and Zenith Capital as financial advisers, has been approved by the Securities and Exchange Commission (SEC).
The company explained at the weekend that the takeover bid is in compliance withÂ Part XII, Section 131(1)(a) of the Investment & Securities Act (ISA) of 2007 and Rule 445 of the SECâ€™s Rules & Regulations, which requires NIPCOÂ Â to make a mandatory takeover bid to all the other shareholders of Mobil Nigeria.
The application for the takeover bid opened on May 30 and it is expected to close on June 29, 2017.
â€œThis offer period represents the opportunity for qualifying minority shareholders of Mobil Oil Nigeria Plc, who tender their shares to earn cash consideration of N417.12 per ordinary share tendered at a satisfactory premium in comparison with the current market price of N290, which the shares are being traded on the floor of the NSE last Friday,â€ the company said.
The Managing Director of NIPCO, Mr. Venkataraman VenkatapathyÂ Â Â recentlyÂ Â Â told the capital market community that the acquisitionÂ of majority shares in Mobil wouldÂ Â bring economy of scale to the firm, benefit Nigerians and grow the economy.
â€œWe would be adding new businesses and works towards increasing the production of its lubes which has remained a cherished brand in the lubricant market,â€ he said.
The NIPCO boss explained that to all discerning investors the deal is a big welcome to a new dawn and new era that will usher in stability, prosperity, sustainability and growth in the downstream sector in particular and the industry in general.
Â Â â€œThe deal will definitely make the NIPCO group bigger not only due to the acquisition but also the additional new business lines to be introduced to make the company one of the most proficient and best run out fit in the industry. The group overall goal is to increase Mobil presence and efficiency across the nooks and crannies of the country and expand its retail footprint to a minimum of 300 at the earliestÂ Â Â and make it a vibrant one,â€ Ventakapathy.