Femi Otedola, chairman of Forte
Oil Plc, has expressed interest in buying assets in the company’s upstream and
power generating businesses.
The decision was made known in a
notice sent to the Nigerian Stock Exchange (NSE), signed by Akinleye Olagbende,
Forte Oil’s company secretary, on Tuesday.
According to the notice, the firm
obtained approval from its shareholders in May to undergo restructuring through
a divestment exercise that will involve the sale of three of its subsidiaries.
The three subsidiaries are Forte
Upstream Services Limited, Amperion Power Distribution Company Limited and AP
Oil &Gas Ghana Limited.
The notice said although a public
sale tender process had already commenced, it was marked by “unexpectedly low
interest in the bidding process” and the pricing proposal fell short of
expectations due to “inability of the bidders to demonstrate adequate financing
capability and capacity”.
The notice said Otedola’s
participation in buying up assets from the company’s subsidiaries would provide
more funding for planned expansion in its downstream business.
“The Chairman of the Group—Mr.
Femi Otedola has expressed interest to participate in the Divestment
Opportunity through his designated vehicle,” the notice read.
“The proposal would be subject to
a rigorous review by your Company’s Management, and if successful, in line with
relevant extant regulatory requirements, be subsequently examined by an
independent financial adviser—separate from the transaction adviser, to confirm
that the transaction is (i) executed on normal commercial terms; and (ii) not
prejudicial to the interests of the Company and other shareholders.
“Successful completion of this
process would ensure adequate funding is available for our downstream
operations.
“The proceeds of this
restructuring exercise will enable your Company to compete more favourably and
achieve its planned expansion objectives in the within the downstream
subsector.”
In December, Otedola revealed his
intention to sell 75 percent stake from Forte Oil’s downstream business in
order to “explore and maximise business opportunities in refining and
petrochemicals.”
He had said the transaction would
be completed in the first quarter of 2019.
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