The Chairman of Ardova Plc, Mr. Wasiu Sowami has successfully completed the acquisition of the company from billionaire businessman, Mr. Femi Otedola as he has settled the $19 million arbitration ruled in favour of the billionaire.
Sowami had through a Special Purpose Vehicle (SPV) -Ignite Investment and Commercial Limited (IICL) in 2020, acquired the company.
According to a report obtained by THISDAY, Sowami, instituted arbitration proceedings seeking to avoid the payment of the balance of $20 million due to Otedola following his acquisition of Ardova in 2020.
However, “the arbitration ruled in favour of Otedola with the award of $19 million against Sowami.”
“The good news is that following several payments in installments, Mr. Wasiu has completed the payment of the arbitrary award, net of certain deductions ahead of the June 2023 deadline. The total payment of the balance is, in the sum of $19million approximately, thus completing the acquisition.”
An investigation by THISDAY revealed that Ignite Investments and Commercial Limited in the 2021 financial year of Ardova had 970,666,694 shares with 74.06 per cent Holding.
The company in its unaudited financial year ended December 31, 2022 declared N7.61 billion loss as against N3.85billion loss reported in 2021 financial year amid hike in cost of sales and finance costs.
Ardova reported N5.05 billion finance cost in 2022, an increase of 41 per cent from N3.58billion in 2021FY, while cost of sales hits N226.9billion in 2022 unaudited, a growth of 18.4 per cent from N191.59billion reported in 2021.
Ardova, formerly Forte Plc, a company Otedola successfully turned around through, strong leadership, immense value accretion by consistently increasing her market capital, shareholder’s funds and dividend payment in folds for over decade.
It was this value accretion that made Ardova market leader, pre and post-acquisition.
Otedola was however delighted that Ardova has maintained her market position post acquisition and now undoubtedly Nigeria’s largest downstream petroleum marketing company.
