Following the approval of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), NIPCO Investments Limited (NIPCO), a wholly owned subsidiary of NIPCO Plc, in a trade executed on the floor of the Nigerian Stock Exchange on Friday, March 31, 2017, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc, in a deal worth N90 billion and one of the biggest in the downstream sector in recent years.
CORDROS Securities Limited acted as the Execution Stockbroker to both ExxonMobil Oil Corporation and NIPCO Investments Limited for this transaction.
NIPCO’s acquisition of the majority stake in MOBIL will serve as a significant breakthrough, which could bolster investors’ confidence and appetite in the sector, following the deregulation initiative of the Federal Government of Nigeria in the downstream oil and gas industry.
Also, this strategic move by NIPCO will ensure the continuous growth and expansion of its Nigerian retail footprint, increase efficiency gains (economies of scale) whilst adding tremendous value to the downstream sector as a result of this notable transaction.
NIPCO is required, by The Investment and Securities Act, to make a takeover bid to all minority shareholders of Mobil Oil Nigeria Plc, having acquired 60 per cent of MOBIL shares.
It was gathered that the Board of NIPCO has made an application to Security Exchange Commission (SEC) for a Takeover Bid of minority shareholders stake in Mobil Oil Nigeria Plc and has received SEC’s “Authority to Proceed” with the Takeover Bid at the same price of N417.12 the acquisition was carried out. The shares of MOBIL currently trade at N300 in the stock market, this is a 40 per cent premium to existing shareholders.
NIPCO, (previously called IPMAN Petroleum Marketing Company Limited), was incorporated on January 8, 2001 as an indigenous oil and gas company operating in the downstream sector of the Nigerian oil and gas industry.
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