Another oil firm wants to exit Nigerian stock market

The number of oil marketing companies listed on the Nigerian Exchange Limited looks set to shrink further as Ardova Plc, formerly Forte Oil Plc, wants to delist from the bourse.

The move comes less than two years after 11Plc, formerly Mobil Oil Nigeria Plc, left the stock market.

Ardova notified the NGX on Monday that Ignite Investments & Commodities Limited has approached its board of directors with the intention to acquire the shares held by other shareholders of the company at an offer price of N17.38 per share, and subsequently delist the Company from NGX.

In June 2019, Ignite Investments and Commodities Limited became the majority shareholder in Forte Oil after the former majority shareholder, Mr Femi Otedola, disposed of his shares in the company.

The company’s name was changed to Ardova in January 2020. 

“The offer price of N17.38 represents a premium of 22.44 percent and 24.38 percent to the 30-day and 60-day volume weighted average share price of N14.19 and N13.97 respectively, on 30 November 2022 (being the last trading day prior to the offer),” Ardova said in a statement on Monday.

It said the proposed transaction would be implemented under a scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.

The proposed transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the company, according to the statement.

It said the terms and conditions of the proposed transaction would be provided in the scheme document that would be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a court-ordered meeting.

“If the conditions of the proposed transaction are satisfied and same is sanctioned by the Federal High Court, the company would be delisted from NGX. Further developments will be communicated to shareholders in due course,” Ardova said.

It advised shareholders and members of the public to exercise caution in dealing in its shares until further information is provided.

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