Prudent Energy tenders another take-over offer for Forte Oil

Barely three months after local oil firm, Prudent Energy Services Limited bought Forte Oil from the Nigerian billionaire, Femi Otedola, the company is planning to make another round of investment in the oil and gas firm, but there’s a condition to be met first.

Prudent Energy’s Ignite Investments and Commodities Limited has disclosed its intention to increase its stake in Forte Oil by 0.04%, and has thereby, made a take-over offer to the qualified shareholders of the company. Prudent acquired Forte Oil in June after Otedola sold his interest. Prudent Energy is owned by Abdulwasiu Sowami.

According to a statement of notice published on the website of the Nigerian Stock Exchange (NSE), Forte Oil revealed that Ignite, the investment arm of Prudent Energy was planning to take-over 500,000 ordinary shares which represent a 0.04% equity stake.

This investment round is expected to increase the stake of Prudent Energy to 74.06 from 74.02 which was bought from Otedola. The additional shares will be purchased at the rate of N66.25 for each ordinary share, which results to N33.13 million take-over payment. Currently, Prudent Energy owns 970,166,694 Ordinary Shares.

Condition for offer: According to the mandatory take-over offer document, “Ignite Investments shall not be obliged to take up, purchase or pay for, any Forte Oil shares tendered pursuant to the Offer unless all of the following conditions are satisfied or waived by Ignite Investments at or prior to the Offer Closure Time.”

  • The Offer shall have been validly accepted or deemed to be validly accepted in accordance with Clause 5.10 on page 14 of the document and the Qualifying Shareholder(s) shall not have exercised their right of withdrawal in respect of one or more Ordinary Shares as at the Offer Closure Time.
  • The absence of pending or threatened material litigation, investigations or other matters in respect of the Ordinary Shares tendered by such Qualifying Shareholder.
  • The representations and warranties made by such Qualifying Shareholder should be certified true and accurate in all respects.
  • The Ordinary Shares tendered are not subject to any charge, lien or other encumbrances.

No job risk: Though the take-over of a company usually threatens the positions of its workers, Forte Oil has assured that no employee would be affected by its take-over. It was also stated that any staff who doesn’t want to continue to work for Forte Oil, “will be entitled to obtain the full terminal benefits due under his/her existing contract of service.”

Note: Qualifying Shareholders who accept the Offer will not be obligated to pay brokerage fees or commissions to Ignite Investments or the Registrar.

The Financial Adviser to Ignite Investments is Stanbic IBTC Capital.

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