Femi Otedola, one of Africa’s richest men and majority shareholder in local energy firm, Forte Oil Plc plans to buy out the energy company’s upstream services and power businesses in a deal expected to be ratified by shareholders next month.
The oil firm’s shareholders last May gave approval for the divestment of Forte Oil from its Ghana unit AP Oil and Gas, Amperion Power Distribution Company and Forte Upstream Services limited.
However, the company said efforts to dispose of the assets have run into a storm as a result of low interest by investors and below expectations pricing proposal for the firms.
According to Forte Oil, the bidders for the company’s assets failed to demonstrate adequate financial capability, causing the deal to be call-off.
Last year, Otedola had signalled his intention to sell-off his 75 percent direct and indirect holdings in Forte Oil downstream business.
He had reached an agreement with Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest his 75 per cent direct and indirect shareholding in the Company’s downstream business.
In a major move, Otedola has now shown interest in the divestment opportunity in the upstream business of Forte oil through his designated vehicle.
It is not clear if the move by the billionaire was part of his original plan to divestment from the downstream business of the company to enable him to take over the lucrative upstream and power assets of the firm.
However, shareholders of Forte oil Plc are expected to meet on February 7, in Lagos to approve the management proposal to sell the Upstream services and power distribution firm to its chairman.
The oil firm’s shareholders last May gave approval for the divestment of Forte Oil from its Ghana unit AP Oil and Gas, Amperion Power Distribution Company and Forte Upstream Services limited.
However, the company said efforts to dispose of the assets have run into a storm as a result of low interest by investors and below expectations pricing proposal for the firms.
According to Forte Oil, the bidders for the company’s assets failed to demonstrate adequate financial capability, causing the deal to be call-off.
Last year, Otedola had signalled his intention to sell-off his 75 percent direct and indirect holdings in Forte Oil downstream business.
He had reached an agreement with Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest his 75 per cent direct and indirect shareholding in the Company’s downstream business.
In a major move, Otedola has now shown interest in the divestment opportunity in the upstream business of Forte oil through his designated vehicle.
It is not clear if the move by the billionaire was part of his original plan to divestment from the downstream business of the company to enable him to take over the lucrative upstream and power assets of the firm.
However, shareholders of Forte oil Plc are expected to meet on February 7, in Lagos to approve the management proposal to sell the Upstream services and power distribution firm to its chairman.
Forte Oil on Wednesday officially informed the Nigerian Stock Exchange (NSE) on its fresh move to sell off its assets as approved by shareholders last May.
In a Letter to the market regulator, signed by Akinleye Olagbende, company secretary, Forte Oil said it would seek shareholder approval for a resolution to mandate the management to go ahead with the deal.
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