Aradel shares extend gains as Shell-Renaissance deal approved 

Shares of Aradel Holdings Plc extended their gains on Wednesday as Shell’s sale of its Nigeria onshore subsidiary to Renaissance Africa Energy Company received ministerial consent. 

Shell announced in January this year that it had reached an agreement to sell Shell Petroleum Development Company of Nigeria Limited to Renaissance.

Aradel is part of Renaissance, a consortium comprising five firms including FIRST E&P, Waltersmith, ND Western and Petrolin. 

Its share price had plunged to a record low of N445.60 on November 1, days after the Nigerian Upstream Petroleum Regulatory Commission said the Shell-Renaissance deal “not scale the regulatory test”.

The company was listed on the Nigerian Exchange Limited (NGX) on October 14 at a price of N702.69.

Its shares have been on the rise since December 11, when it was announced that Aradel had agreed to acquire 5.14% equity interest in Chappal Energies Mauritius Limited.  The company saw its share price jump by 42.79% in one week to N664 on Wednesday, while its market capitalisation surged to N2.88 trillion from N2.02 trillion, according to NGX data compiled by Markets Reporters.

Aradel’s market value has almost doubled since November 1 when it plunged to N1.94 trillion from N3.05 trillion on listing day.

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