Forte Oil sells its shares; plans to invest in refining

              

Chairman of Forte Oil Plc, Femi Otedola, has announced the sale of his 75 per cent direct and indirect shareholdings in the oil company.

A disclosure notice sent to the Nigerian Stock Exchange (NSE) on Monday said that the Forte Oil boss has reached an agreement with another energy firm, Prudent Energy, which is investing through Ignite Investments and Commodities Limited.

The disclosure notice, signed by the general counsel of Forte Oil Plc, Akinleye Olagbende, said Mr Otedola’s decision came amidst plans to invest in petrochemicals and refining.

“Forte Oil Plc hereby notifies the Nigerian Stock Exchange (NSE), Securities and Exchange Commission (SEC), 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,” the disclosure read.

“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 (Q l ) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.”

The firm disclosed further that Standard Chartered Bank, Corporate Finance & Advisory, Dubai, and Olaniwun Ajayi LP served as financial and legal advisers respectively to Mr 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.

“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 disclosure added.

Formerly known as African Petroleum Plc, Forte Oil operates mostly in the downstream sector of the oil and gas industry.

Earlier in the year, the company had announced plans to restructure its business by divesting its upstream services, power generating businesses in Nigeria and downstream business in Ghana. In May, the restructuring plans were approved by shareholders of the company at its annual general meeting (AGM).