No plans to delist Forte Oil from stock market – Official
Mr Olumide Adeosun, Chief Executive Officer, Forte Oil Plc, says the company’s new management will not delist its shares from the Nigerian Stock Exchange (NSE) or buy out the minority shareholders through Mandatory Tender Offering (MTO).
Adeosun disclosed this in an interactive session with journalists to unveil the strategies of the new management to drive the company, on Tuesday in Lagos.
Adeosun said the new owners were in for long term investment and wanted stockholders to hold their shares.
An MTO is a public open offer or bid by a potential acquirer of a company, inviting shareholders to offer their shares for sale at a particular price during a specified time.
It is subject to a minimum and maximum number of shares. The acquirer often offers a price at a premium over the current market price of the target company’s shares as a means of inducing the shareholders.
“Our message to our minority shareholders is that we are going to sustain the business here, we want people to retain their shares in this company.
“Our desire is that people who are stockholders of this company continue to remain stockholders of this company and benefit from the dividend we hope to discuss over time,” he said.
He noted that the company had put together a strong board made up with professionals that would take the company to the next level, and that it would likely rebrand in future to reflect the new structure.
“The name FO is actually personal to an individual and that individual has sold his shares and it’s very likely that we are going to rebrand,” Adeosun said.
According to him, Forte Oil brand will remain in place pending when the management decides to change it.
He said the company would henceforth focus on people, customers, shareholders and build on corporate governance already in place at Forte Oil by ensuring regular release of information.
He stated that the company would grow value for all shareholders both majority and minority through cost saving initiatives as well as opportunities across its value chain.
Adeosun said the company would develop and bring in the right talents to enhance growth and development.
He said the newly acquired company would focus on increasing volumes, diversifying business operations, widening distribution networks and extracting potential synergies to boost revenue.
Adeosun said that investment was of strategic importance to support the company’s quest of continuously adding value to the Nigerian oil and gas industry.
He said the company would also invest massively in the downstream sector to achieve the desired growth.
The Forte Oil boss said the company was also investing in Liquefied Petroleum Gas (LPG) through a partnership with Prudent Energy on 6,000 metric tones expected to commence in July.
“We have about 800 metric tones storage facility in Apapa that will ease products distribution across the country,” he added.
“Forte Oil operates in the downstream sector of the oil and gas industry as a foremost indigenous petroleum marketing company with a strategic network of over 500 retail outlets in the 36 states of Nigeria and the capital city of Abuja.
“The company markets Premium Motor Spirit (PMS), Automotive Gas Oil (Diesel) and Jet A-1 fuel amongst others.
“As a company we place special emphasis on the varied needs of our customers, Forte Oil produces and distributes a vast range of quality lubricants to satisfy various automotive and industrial lubrication requirements,” he said.
The News Agency of Nigeria (NAN) reports that Forte Oil on June 20, appointed new Chief Executive Officer and Chief Financial Officer following the completion of the sale of Mr Femi Otedola’s shares in the firm’s downstream operations.
The firm announced that Adeosun and Mr Moshood Olajide had been appointed as the Chief Executive Officer and Chief Financial Officer, respectively, after the resignation of Mr Akin Akinfemiwa and Mr Julius Omodayo-Owotuga.
Forte Oil in a notice filed with NSE said Ignite Investments and Commodities Limited, led by Prudent Energy Services Limited, had completed the acquisition of Otedola’s 74.02 per cent shareholding.
According to the firm, the completion is consequent upon Ignite receiving all the necessary approvals from SEC, NSE and fulfilling all relevant terms and conditions attached to the Share Purchase Agreement.
It said: “As a result of this and further to the announcement on Dec. 28, 2018, Ignite will take over controlling stake in Forte Oil Plc, the downstream company.” (NAN)