Femi Otedola, chairman of Forte Oil Plc, says he agreed to sell his 75% stake in Forte Oil because he would like to maximise the opportunities in refining.
In a statement released on Monday, the company said the transaction will be completed in the first quarter of 2019.
“Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 per cent direct and indirect shareholding in the company’s downstream business,” the notification signed by Akinleye Olagbende, Forte Oil’s general counsel, read.
“Mr Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals.
“The transaction is expected to close in the first quarter (Q l ) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approval.”
Standard Chartered Bank, Corporate Finance & Advisory, Dubai, and Olaniwun Ajayi LP served as financial and legal advisors to Otedola, while PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as joint financial advisors and Sefton Fross served as legal advisor to Ignite Investments and Commodities Limited.
“There will be no sale of the ordinary shares or any other securities in any state or jurisdiction in which such an offer solicitation or sale is not permitted,” the notification read.