Having received 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 NSE at the weekend, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc.
The deal is 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 add 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.
The board of NIPCO had made an application to SEC for a takeover bid of minority shareholders stake in Mobil Oil Nigeria Plc and had received SEC’s “Authority to Proceed” at the same price of N417.12 the acquisition was carried out.
NIPCO, was incorporated on 8th January 2001 as an indigenous oil and gas company operating in the downstream sector of the Nigerian oil and gas industry.
ExxonMobil Oil Corporation (EMOC) evolved from a regional marketer of kerosene in the United States of America (“US”) to the largest publicly traded petroleum and petrochemical enterprise in the world.
EMOC operates in most countries in the world and is best known by its familiar brand names: Exxon, Esso, and Mobil.