The Nation Newspaper

Tag: Shareholders

  • NASCON promises better future as shareholders get N1.85b dividend

    NASCON Allied Industries Plc would be making new investments in its major lines of operations to improve overall efficiency and market share in continuation of ongoing efforts to ensure long-term growth and returns to shareholders.

    The board of directors of NASCON yesterday at the annual general meeting in Lagos assured shareholders of its unwavering commitment to the continued growth and prosperity of the company. The assurance came as shareholders approved distribution of N1.85 billion as cash dividend for the 2016 business year as against N1.46 billion distributed for the 2015 business year. Shareholders will receive a dividend per share of 70 kobo, 27 per cent above 55 kobo paid for the 2015 business year.

    Addressing the shareholders, chairman,   NASCON Allied Industries Plc, Yemisi Ayeni, said the outlook for the company remains optimistic as it continues to drive growth across its core brands with significant investments in marketing and brand building efforts.

    She said the company would also continue to focus on distribution and route-to-market efficiency as a key driver of growth.

    “To support our growth strategy, we will be investing in salt packaging and seasoning cubing lines to improve efficiency and increase market share. We will be acquiring new trucks to reduce external hiring and ensure optimal distribution of all our products,” Ayeni said.

    Managing director, NASCON Allied Industries Plc, Mr. Paul Farrer, noted that with expected steady improvements in the economy over the next 18 months, the company is confident of improved performance.

    He added that the company had taken some key decisions in the area of retail pricing and convenience, which have resulted in immediate and long-term gains, including a focus on optimization of the route to market to ensure product availability.

    “We remain confident that our long term strategy for vegetable oil and tomato paste businesses will yield results in the near future,” Farrer said. NASCON had suspended the vegetable oil and tomato paste businesses in 2016 due to paucity of raw materials.

    Key extracts of the audited report and accounts for the year ended December 31, 2016 showed that NASCON grew turnover to N18.29 billion in 2016 as against N16.18 billion in 2015. Gross profit rose from N4.36 billion to N5.92 billion. Operating profit also increased from N3.03 billion to N3.82 billion. Profit before tax rose from N3.02 billion to N3.52 billion. Profit after tax increased from N2.11 billion to N2.42 billion. Earnings per share thus improved from 79 kobo in 2015 to 91 kobo in 2016.

  • Shareholders laud FCMB over improved performance

    Shareholders laud FCMB over improved performance

    Shareholders of FCMB Group Plc at the weekend commended the board and management of the banking group for notable improvement in the performance of the holding company.
    At the Annual General Meeting (AGM) in Lagos, shareholders unanimously approved the distribution of N1.98 billion as cash dividend for the 2016 business year, representing a dividend per share of 10 kobo and more than 10 per cent in dividend yield.
    Key extracts of the audited report and accounts of FCMB Group for the year ended December 31, 2016 had shown that profit before tax doubled by 109 per cent to N16.3 billion in 2016 as against N7.8 billion in 2015. Profit after tax also jumped by 198 per cent to N14.3 billion in 2016 as against N4.8 billion in 2015. Gross earnings grew by 16 per cent to N176.35 billion in 2016 from N152.51 billion in 2015.
    Reviewing the performance of the company at the general meeting, shareholders commended what they described as impressive growths across the performance indices.
    Founding national coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the board and management of FCMB Group for efficiently running its affairs, citing the appreciable growth recorded in key operating areas.
    He noted that the overall performance of the company has been good despite the recession the economy went through during the year under review.
    ‘’Impressive rise in profitability and dividend payment are clear signs that FCMB is resilient, on a stronger footing to overcome the difficult business environment and continually meet the expectations of shareholders and other stakeholders. Overall, we are satisfied with the performance,’’ Nwosu said.
    Also, National Chairman, Shareholders’ Trustees Association of Nigeria, Alhaji Mukhtar Mukhtar, said shareholders were happy that FCMB has again risen to the occasion by delivering value to shareholders, while also showing a strong ability to adapt effectively and professionally to the dynamics of the business environment.
    “We strongly believe that FCMB will continue to do perform better,’’ Mukhtar said.
    Chairman, FCMB Group, Dr. Jonathan Long, attributed the performance recorded last year to the professionalism and commitment the financial institution brought to bear on its business and operations.
    ‘’The Group has shown itself, capable of weathering the storm and I am confident that the year ahead will prove to be no exception,’’ Long, who was represented by a Director, Mr Bismarck Rewane, said.
    In his remarks, Group Chief Executive Officer, FCMB Group Plc, Mr. Ladi Balogun, noted that the realities of 2016 have been good tests of the resilience of the bank’s turnaround programme commenced in 2015.
    ‘’Across most indices, we have recorded progress and we intend to stay this course in the coming year,’’ Balogun assured.
    He said the financial services group has built a solid business model around retail and transaction banking to deliver sustainable profit growth, effective use of technology to boost efficiency, reduced risk appetite and a great customer experience.

  • NIPCO shareholders get N563m dividend

    NIPCO shareholders get N563m dividend

    Shareholders of NIPCO Plc yesterday approved the distribution of N563 million as cash dividend for the 2016 business year as shareholders applauded the strides by the company to increase its dominance in the Nigerian downstream oil sector.

    NIPCO had through its wholly-owned subsidiary acquired the 60 per cent majority equity stake in Mobil Oil Nigeria Plc from ExxonMobil Oil Corporation.

    The breakdown of the dividend implies that shareholders will receive a dividend per share of N3. Key extracts of the audited report and accounts of NIPCO for the year ended December 31, 2016 showed that turnover dropped from N170.50 billion in 2015 to N114.72 billion in 2016. Profit after tax meanwhile rose from N1. 42 billion in 2015 to N1.60 billion in 2016.

    Speaking at the 13th annual general meeting (AGM) yesterday at Transcorp Hotel, Abuja, chairman, NIPCO Plc, Chief Bestman Anekwe said the results demonstrated the aggressive push the company had made in the downstream sector.

    He described the year 2016 as one of the most difficult years ever witnessed in the socio-economic development of the nation but noted that the proactive nature of the company made it to stand shoulder high among its peers by being able to sustain its growth pattern.

    He pointed out what he described as the giant and audacious stride of acquiring ExxonMobil’s 60 per cent equity stake in Mobil Oil Nigeria Plc, which has further strengthened NIPCO’s position in the industry and widened its retail footprints.

    Anekwe commended shareholders for their unflinching support and constructive partnership over the years, which has enabled the company to attain enviable height in the industry in spite of a tough operating environment.

    In his own remarks, Group Managing Director, NIPCO Plc, Mr. VenkataramanVenkatapathy attributed the improved performance of the company to increased sales drive, effective management of resources and adjustment of business model to the changing market variables.

    According to him, although the year was marked by economic constraints, NIPCO made spirited efforts to reduce the impact on its customers without having any negative effect on shareholders’ return on investment.

    “We prepared ceaselessly for the expected harsh operating environment by focusing on effective management of resources with a special focus on cost containment without jeopardizing quality in our entire operations,” Venkatapathy said.

  • Stanbic IBTC assures shareholders of sustainable returns

    Stanbic IBTC assures shareholders of sustainable returns

    The board of directors and management of Stanbic IBTC Holdings Plc have reassured shareholders that the financial services group is steadily on track to sustain its long-term strategic growth and profitability objectives in spite of the macroeconomic challenges.

    At the annual general meeting in Lagos, the management of the bank reemphasized the strategic growth plan of the bank and assured shareholders that the group remained committed to delivering outstanding value to all stakeholders.

    Chief executive officer, Stanbic IBTC Holdings Plc, Mr. Yinka Sanni said the bank’s strategy of building a franchise capable of generating sustainable returns to its shareholders remains in place as it continues to invest in building a cost-efficient and customer-friendly organization.

    According to him, despite a slowing economy, the group remains in a very sound financial shape as attested to by Fitch Ratings, which recently reaffirmed the national ratings of both Stanbic IBTC Bank and Stanbic IBTC Holdings.

    He pointed out that the group has earnestly continued to grow its customer base through innovation and customized financial solutions, which should simultaneously continue to ensure better earnings and positive outcomes for all stakeholders.

    “Our customers and stakeholders are the epicentre of our existence and will remain so. Our balance sheet remains strong and we believe it will get stronger in the coming years. We will continue to deliver exceptional service and value to our customers, together with profitability and growth in a sustainable manner,” Sanni said.

    He said the bank would continue to prioritise asset quality through diligent and systematic approach to risk management.

    During the meeting, shareholders approved a dividend as recommended by the board, re-elected retiring directors and appointed additional directors. Key extracts of the audited report for the year ended December 31, 2015 showed that the group recorded gross earnings of N140.027 billion, up from N130.654 billion from 2014. Profit before tax stood at N23.651 billion during the period, while profit after tax was N18.891 billion. Total assets decreased to N937.6 billion by December 2015, while customer deposits was largely flat at N493.5 billion during the same period.

    Stanbic IBTC had been embroiled in a long-drawn dispute with the Financial Reporting Council of Nigeria. The dispute was resolved late 2016. In a statement to the Nigerian Stock Exchange (NSE) on December 21, 2016, Stanbic IBTC indicated that its 2015 audited financial statements, which had been held in abeyance due to the dispute, had been signed off by the external auditors, Messrs. KPMG Professional Services, paving the way for the group to make the report public.

  • Vitafoam outlines growth strategies as shareholders get N125m dividend

    Vitafoam outlines growth strategies as shareholders get N125m dividend

    Vitafoam Nigeria Plc will launch a new finance strategy, strengthen its operations through innovative products and reposition its foreign operations further for sustainable profitability as part of a broad growth plan for the 2017 business year.
    Chairman, Vitafoam Nigeria Plc, Dr. Bamidele Makanjuola, who outlined the group’s growth strategy to shareholders at the annual general meeting in Lagos, said the group would continue to proactively reappraise its strategies in a bid to harness emerging opportunities from various government reforms in order to deliver better returns to shareholders.
    According to him, the company plans to launch a more robust and creative funding strategy this year to lessen the impact of finance cost on the business and ensure improved returns to shareholders.
    He noted that in spite of the inclement manufacturing environment in Nigeria, continuing strategic repositioning has lessened the disruptive impact on the group, adding that the group would continue to leverage its retail platform to expand the frontier of the business and retain market leadership.
    “In spite of the tough operating environment the company achieved a 110 per cent increase in the profit after tax from N196.64 million in 2015 to N412.39 million in 2016. The company’s total assets grew by eight per cent from N 12.09 billion in 2015 to N13.09 billion last year. This was supported by the growth in our long-term investment and total current asset,” Makanjuola said.
    He pointed out that the group’s insulation business, Vitapur Nigeria Limited, had overcome the initial start-up challenges to post its first profit in 2016, noting that the hi-tech business remained one of the flagships of the group’s businesses with huge opportunities for tremendous growth.
    He added that the group shall continue to leverage its first -mover status to position Vitapur as a dominant brand in the insulation business within the West African sub-region.
    According to him, another subsidiary, Vitavisco Nigeria Limited, the group’s visco-elastic business, is producing highly specialised products that are complementary to Vitafoam’s core products.
    He noted that with the merger of Vono Products Plc with Vitafoam Nigeria, Vono Furniture Products Limited, which emerged from the merger has commenced business on an encouraging note while the group has repositioned its international businesses in Sierra Leone and Ghana to optimise their profitability.
    In a brief chat with the media, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the group would remain resilient and continue to prioritise the interest of its shareholders in its business decisions. He assured that, notwithstanding the challenges in the economy, the group would sustain its unbroken record of dividend payment to shareholders.
    According to him, the strategic repositioning exercise undertaken in the previous year has placed the company in a better stead to sustain its competitive edge.
    Shareholders approved the distribution of N125 million as cash dividend for the 2016 business year, representing a dividend per share of 12 kobo. The dividend will be paid on March 9, 2017.

  • Linkage assures shareholders of dividends

    Linkage Assurance Plc has assured its shareholders of dividends payment going forward.
    It’s Managing Director, Dr Pius Apere, made this known while responding to shareholders’questions at the Company’s 22nd Annual General Meeting (AGM) in Lagos.
    Apere, who said bad days are over for the company, said its future looks bright given the result of its restructuring, which is beginning to impact on its overall performance.
    He said: “We have got to the end of the tunnel where dividend will start coming. The figures from our 2016 unaudited accounts, plus expected dividend from investment would put smiles on the faces of shareholders.
    “The company has strengthened its human capital with new heads of department, while its marketing team has been beefed up with top flight insurance marketers and the results coming are fantastic.
    “We have gone past the time when we measure our performance based on gross premium, we are now measuring based on bottom line. Going forward, there will be an improved communication between our company and the shareholders so that all of us will keep pace with developments in the company.
    Speaking on the firm’s 2015 results, Chairman of the Company, John Eseimohkumoh said its gross premium grew by 24 per cent from N3.05 billion in 2014 to N3.79 billion while net premium rose 25 per cent to close N2.44 billion at the end of 2015.
    He said investment and other incomes rose by 26 per cent from N1.19 billion in 2014 to N1.50 billion.
    “Profit before tax also grew by 60 per cent from N580.85 million in 2014 to N929 million, while profit before tax closed at N512.24 million, a growth of 58 per cent.
    “Going forward, we are confident that that in spite of the uncertainties in the economy, the future is still bright. In line with our strategic roadmap we will continue the repositioning strategy aimed at transforming the company through a set of definitive strategic initiatives as enunciated in our growth plan,” he added.

  • UPDC to raise N5.2b new equity from shareholders

    UACN Property Development Company (UPDC) Plc is seeking to raise about N5.2 billion new equity funds from its existing shareholders to reduce its debt burden and provide supportive capital for long-term growth.
    A source in the know indicated that UPDC, a subsidiary of UAC of Nigeria (UACN) Plc, Nigeria’s largest conglomerate; plans to undertake a rights issue of about 1.72 billion ordinary shares of 50 kobo each at a price of N3 per share.
    According to the source, the qualification date for the rights issue was Thursday January 19, 2017 and the shares would be pre-allotted on the basis of one new ordinary share for every one ordinary share held as at the qualification date.
    The rights issue price of N3 per share represents a premium of 9.1 per cent on UPDC’s market price of N2.75 at the start of trading on Friday. Traditionally, rights issue is usually offered at lower-than-market price as a form of bonus and incentives to shareholders. An analyst stated that the UPDC’s rights price of N3 implied that the directors of the company and their professionally advisers believe that the company is undervalued at the secondary market.
    The source confirmed that UPDC has applied to the Quotation Committee of the Nigerian Stock Exchange (NSE), which oversees new issues and listing, for the approval of the rights issue.
    UPDC was spuned off from UACN and its shares were listed on the NSE in 1997. UACN still holds the largest 46 per cent equity stake while First Trustees Nigeria holds the second largest stake of 12 per cent. Other corporate bodies hold some 18 per cent while individuals and trustees hold the balance of 24 per cent.
    UPDC had recorded pre-tax profit of N133 million in the third quarter of 2016, breaking away from a losing streak that had worsened due to its relatively high financial leverage and indebtedness. The company had recorded a net loss of about N128 million in the first quarter of 2016.
    Key extracts of the nine-month report of UPDC for the period ended September 30, 2016 showed that the real estate company recorded profit before tax of N132.95 million in the third quarter of 2016 as against pre-tax loss of N109.76 million in comparable period of 2015. Tax provision of N109.18 million in 2016, however, depressed net profit after tax to N23.77 million, still a significant recovery from the net loss of N109.76 million recorded in third quarter 2015 when the company did not provide for tax due to the losses.
    The report showed that the rebound was driven by reduction in cost of sales and gains from disposal of certain assets. While group turnover dropped from N4.10 billion to N3.21 billion, gross profit improved from N841.12 million to N904.46 million. With a gain of N747.37 million on disposal of assets, operating profit stood at N348.04 million in 2016 as against N445.1 million. Operating profit was depressed by 80 per cent increase in administrative expenses from N788.9 million to N1.42 billion.
    Chairman, UACN Property Development Company (UPDC) Plc, Mr Larry Ettah, had recently outlined that the company plans to raise new equity funds through a rights issue and additional capital by disposing some assets in a multi-prong strategy aimed at enlivening the slowing performance of the real estate company.
    According to him, the company plans to reduce its indebtedness and strengthen its balance sheet by raising new equity funds from existing shareholders, selling down the company’s surplus stake in the UPDC Real Estate Investment Trust (UPDC REIT) and disposing underperforming assets.
    “Our strategy for 2016 and beyond includes deleveraging the business through equity capital injection by way of rights issue, sell down of surplus stake in the REIT and disposal of low-performing assets, as well as leveraging on partnerships and alliances that are in sync with the company’s long term goals,” Ettah said.
    He said the company was recalibrating development towards the retail segment and has put in place strategies to enable it take advantage of emerging opportunities in the segment.

  • Shareholders eye 129% capital gain on Mobil-Nipco’s $301m acquisition deal

    Minority shareholders in Mobil Oil Nigeria Plc could receive more than a double of their current valuations if they decide to take advantage of the ongoing acquisition deal between divesting ExxonMobil Oil Corporation and Nipco Plc.

    Nipco had agreed to pay $301 million for the acquisition of ExxonMobil Oil Corporation’s 60 per cent majority equity stake in Mobil Oil Nigeria Plc. The total consideration of $301 million, which is subject to price adjustments for dividends and other factors, is equivalent to N91.88 billion at current official exchange rate of N305.25 per Dollar.

    Under the deal, ExxonMobil will sell its majority equity stake of 60 per cent to Nipco Investments Limited; a wholly-owned subsidiary of Nipco. ExxonMobil will transfer its total shareholding of 216.36 million ordinary shares of 50 kobo each to Nipco Investments Limited for the consideration of $301 million.

    The gross transaction value implies a valuation of about N425 per share, 128.5 per cent above Mobil Oil Nigeria’s share price of N186 on the announcement date for the deal and 51.8 per cent above Mobil Oil Nigeria’s current share price of N280 per share at the Nigerian Stock Exchange (NSE).

    Under the extant laws at the capital market, Nipco will be required to make offer similar to the ExxonMobil Oil Corporation’s to the minority shareholders of Mobil Oil Nigeria Plc.

    The acquisition, which has already been filed with the Securities and Exchange Commission (SEC) for a “no objection” clearance, is expected to trigger the mandatory tender offer (MTO) provision of the Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

    Lafarge Africa Plc, which acquired majority shares in Ashaka Cement Plc, made similar MTO to minority shareholders of Ashaka Cement.

    Mobil Oil Nigeria’s share price remained unchanged at N280 per share at the NSE yesterday as oil and gas stocks continued to lead the downtrend at the Exchange. Seplat Petroleum Development Company led the losers with a loss of N19.50 to close at N370.50. Forte Oil followed with a loss of N9.22 to close at N85.47 while Oando dropped by 21 kobo to close at N4.20 per share. The sectoral index, the NSE Oil and Gas Index declined by 3.7 per cent, significantly higher than the average decline of 0.46 per cent recorded by the general benchmark index.

    The All Share Index (ASI), NSE’s general benchmark index, declined from its opening index of 26,540.87 points to close at 26,418.11 points. Aggregate market value of all quoted equities on the Exchange also dropped by N42 billion from N9.132 trillion to close at N9.090 trillion.

  • Shareholders get 90-day exit window as AshakaCem concludes delisting plan

    Shareholders of Ashaka Cement Plc have 90 days to decide on the various options to exit the company or retain their shareholdings in an unlisted company as the Gombe-based cement firm is set delist its shares from the Nigerian Stock Exchange (NSE).

    Shareholders, at an extraordinary general meeting (EGM) on Monday in Abuja approved the resolutions proposed by the directors for a voluntary delisting from the NSE.

    With the approval, shareholders will now have a 90-day window to decide on the exit plan on offer – in line with the requirements of the NSE on voluntary delisting.

    Within the 90-day period, shareholders have three options. They may decide to trade their shares on the NSE through their nominated stockbroker. Alternatively, they may decide to receive consideration from Lafarge Africa Plc in exchange for transferring their shares, on same terms as were for the Mandatory Tender Offer (MTO) and Voluntary Tender Offer (VTO). During the MTO and VTO, Lafarge Africa offered 57 new Lafarge Africa shares for 202 AshakaCem shares held as at the date of the special resolution approving the voluntary delisting and a cash consideration of N2 per every AshakaCem exchanged. On the other hand, shareholders may decide to retain their shareholdings in the unlisted AshakaCem.

    Ashaka Cement Plc Vice Chairman, Mrs Edith Onwuchekwa, said the voluntary delisting will not occasion loss of shares held by shareholders as they may decide to retain their membership in the unlisted company if they so wish.

    Onwuchekwa, who represented the chairman of the company, Alhaji Suleyman Yahyah, said  AshakaCem will continue to operate as a legal entity with its own board of directors after the voluntary delisting.

    Directors of the company said the voluntary delisting and full integration of Ashaka Cement as subsidiary of Lafarge Africa will offer minority shareholders many benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.

    They added that shareholders also stand to benefit from revenue diversification by plant location due to wide spread operations across the Northeast, Southeast and Southwest regions of Nigeria.

    According to the board, through the voluntary delisting, the company, with a current free float of 15.03 per cent, is in violation of the NSE listing rule of a minimum of 20 per cent, will be shielded from any enforcement action or sanction that the NSE may impose due to the violation.

    They noted that a mandatory regulatory delisting that would have resulted from unresolved free float deficiency could damage the reputation of the company.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine them with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the NSE.

    The acquisition thus triggered the mandatory tender offer (MTO) provision of the Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which made it mandatory for any institution or person that acquired at least 30 per cent of a company to make an MTO to other minority shareholders.

    Under the terms of the MTO, Lafarge Africa offered 261.58 million ordinary shares and N1.85 billion as equity and cash consideration for the takeover of the 41.39 per cent equity stake held then by minority shareholders in Ashaka Cement.

    Lafarge Africa offered 57 ordinary shares of 50 kobo each in exchange for 202 ordinary shares of 50 kobo each of Ashakacem. In addition, Lafarge Africa paid N2 for every acquired Ashakacem’s share.

    Lafarge Africa subsequently launched a Voluntary Tender Offer to acquire the remaining equity stakes held by minority shareholders in Ashaka Cement. Minority shareholders then held 392.864 million ordinary shares in Ashaka Cement, representing 17.54 per cent of the entire issued share capital of the Gombe State-based cement company. The conclusion of the VTO led to the voluntary delisting.

  • Nipco shareholders okay guaranty for $301m Mobil acquisition

    Nipco shareholders okay guaranty for $301m Mobil acquisition

    Shareholders of Nipco PLC have authorised the Board of Directors to stand as a surety and guarantor for the acquisition of 60 per cent majority equity stake in Mobil Oil Nigeria by Nipco Investments Limited, a wholly owned subsidiary of Nipco Plc.

    At the extraordinary general meeting, shareholders praised the acquisition and approved all resolutions tabled before the meeting.

    Nipco had agreed to pay $301 million for the acquisition of ExxonMobil Oil Corporation’s 60 per cent majority equity stake in Mobil Oil Nigeria Plc. The total consideration of $301 million, which is subject to price adjustments for dividends and other factors, is equivalent to N91.88 billion at current official exchange rate of N305.25 per Dollar.

    Under the deal, ExxonMobil will sell its majority equity stake of 60 per cent to Nipco Investments Limited; a wholly-owned subsidiary of Nipco. ExxonMobil will transfer its total shareholding of 216.36 million ordinary shares of 50 kobo each to Nipco Investments Limited for the consideration of $301 million.

    At the meeting, shareholders authorised the board to stand as surety and guarantor for Nipco Investments Limited and also approved the guaranty dated September 26, 2016 given by Nipco for the benefit of ExxonMobil Corporation, USA in connection with the acquisition by Nipco Investments Limited.

    A shareholder, Alhaji Sanni Yau said the acquisition was a demonstration of the capacity of Nipco and its commitments to the Nigerian economy.

    According to him, the fact that Nipco had in the last 12 years focused exclusively on the downstream sector will give it necessary confidence and wherewithal to effectively reposition Mobil Oil Nigeria as an industry leader within the shortest possible time.

    He noted that the confidence reposed in Nipco to put Mobil Oil back as an industry has started to manifest, citing the share price appreciation of more than 55 per cent since the official announcement of the deal by Mobil Oil Nigeria at the Nigerian Stock Exchange (NSE).

    He expressed confidence that Nipco would not only sustain the modest performance of Mobil Oil  but also improve on it as it pursues the company’s vision of being the  first choice company in the hydrocarbon industry to all stakeholders.

    Another shareholder, Alhaji Suleiman Mohammed, noted the historic position of the acquisition as the first of such to be undertaken by an indigenous operator.

    He praised the Board of Nipco for taking such a laudable step which is fast reshaping the landscape of the downstream sector.

    Similarly, another shareholder, Alhaji Musa Felande, said the acquisition would benefit independent fuel marketers who will earn more returns through improved earnings on their shares in Nipco.

    He urged the board and management of the company to consider going into petroleum refinery in the near future.

    In his remarks, Managing Director, Nipco PLC, Mr Venkataraman Venkatapathy said the acquisition is an important synergy and part of a strategy to support Nipco’s continuous growth and expansion in the retail sector of the oil and gas industry.

    Venkatapathy, who stood in for the Chairman of Nipco, Chief Bestman Anekwe, said the company would continue to maintain the Mobil Oil brand at its retail outlets as well as continue to blend and sell Mobil Oil brand of lubricants under blending licence from ExxonMobil.