Business Magnate, Femi Otedola Sells Forte Oil

Posted by African Examiner Business News, Energy, Latest Headlines Tuesday, December 25th, 2018

(AFRICAN EXAMINER) – The Chairman of Forte Oil Plc, Mr. Femi Otedola has announced his resolve to sell all his shares in the firm’s downstream business.

Forte Oil gave the hint on divestment Monday by its majority shareholder in a notice signed by its General Counsel, Mr. Akinleye Olagbende.

“Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 per cent direct and indirect shareholding in the company’s downstream business.

“Mr Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals. The transaction is expected to close in the first quarter of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals’’ the notice read.

Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP served as financial and legal advisers respectively to Otedola, while PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as joint financial advisors and Sefton Fross served as legal advisor to Ignite Investments and Commodities Limited.

The firm, however, stated that the notification was not intended to constitute an offer to sell or a solicitation of an offer to buy any of the ordinary shares or any other securities.

The notice added: “There will be no sale of the ordinary shares or any other securities in any state or jurisdiction in which such an offer solicitation or sale is not permitted.”

The latest development is coming over three years after the firm sold 17 per cent of its equity to a Swiss Oil trading firm.

In October 2015, Forte oil announced that the Mercuria Energy Group Holdings SA has acquired 17 per cent of its equity, valued at $200m.

The firm then said in a statement that Mercuria Energy had made inroads into the West African energy sector through direct investment in Forte Oil.

Mercuria confirmed that it was joining forces with Forte Oil at an auspicious time when equitable funding and expertise is needed to expand and intensify its market penetration to give the company the leverage to further create a positive impact for all shareholders.

The firm (Forte Oil), was formerly branded as African Petroleum (AP) Plc. It operates in the downstream sector of the oil and gas industry.