Majority shareholder of Forte Oil Plc, Femi Otedola, is planning to buy out the company’s upstream services and power distribution firm to be ratified by the shareholders on February 7.
The firm’s secretary, Akinleye Olagbende, disclosed this in a letter to the Nigerian Stock Exchange (NSE) on Wednesday.
Qed.ng had reported in December 2018 that Mr Otedola had signaled his intention to sell-off his entire 75 per cent direct and indirect holdings in Forte Oil downstream business.
He said the company’s effort to dispose the assets was hit by low interest in the bidding process as well as low price expectations.
“A public tender sale process was commenced to attract interested potential investors to participate in the divestment opportunity.
“Upon review of the outcome of the sale process, the management of the company is of the view that there was an unexpectedly low interest in the bidding process.
“The pricing proposal does not meet its expectation, based on an independent valuation of Amperion, thus, may not be in the best interest of its shareholders,” Olagbende said.
He added that based on the development, the company’s chairman had expressed interest to participate in the divestment opportunity through his designated vehicle.
According to him, the proposal will be subject to a rigorous review by the company’s management and if successful must be in line with relevant extant regulatory requirements.
He explained that the proceeds of this restructuring exercise would enable the company to compete more favourably and achieve its planned expansion objectives within the downstream subsector.
