The Securities and Exchange Commission (SEC) has approved an extension in the period for the minority shareholders of Mobil Oil Nigeria Plc to sell their shares to NIPCO Investment Limited (NIL).
Following the successful acquisition of 60 per cent equity stake of Mobil Oil Nigeria Plc by NIL from Exxon Mobil Oil Corporation by NIPCO, the company had applied to regulators to acquire additional shares from minority shareholders.
The application for the Mandatory Take Over (MTO) bid opened had opened on May 30 and was to close on June 29, 2017.
THISDAY had exclusively reported last week that there were strong indications that there would be an extension in the period for the minority shareholders to accept the offer.
In notification to the Nigerian Stock Exchange (NSE), Cordros Securities Limited, one of the financial advisers in the transaction, said SEC had approved an extension. The MTO has now close July 27, 2017.
NIL had explained that the takeover bid is in compliance with 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 NIL to make an MTO bid to all the other shareholders of Mobil Nigeria.
The qualifying minority shareholders of Mobil Oil Nigeria Plc, who tender their shares will earn a cash consideration of N417.12 per ordinary share.
The Group Managing Director of NIPCO, Mr. Venkataraman Venkatapathy had told the capital market community that the acquisition of majority shares in Mobil would 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€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 earliest and make it a vibrant one,â€ Ventakapathy.