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NIPCO Agrees $301m For 60% Stake In Mobil Oil

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By Modupe Gbadeyanka

A Nigerian downstream oil and gas company, NIPCO, has offered to acquire 60 percent shares of ExxonMobil in Mobil Oil Nigeria at N301 million.

This was disclosed in a statement signed by the Chairman/Managing Director of Mobil Oil Nigeria, Mr Adetunji Oyebanji, and made available to the Nigerian Stock Exchange (NSE) on Tuesday.

It was stated that NIPCO was acquiring the shares for a consideration of $301 million subject to price adjustments for dividends and other factors.

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It would be recalled that in October 2016, NIPCO had executed a Sales and Purchase Agreement with ExxonMobil for the acquisition of the 216,357,157 shares, but the financial consideration was not disclosed then.

In the notification to the NSE yesterday, Mr Oyebanji said, “Further to our communication of October 19, 2016, where we disclosed that ExxonMobil Oil Corporation (EMOC) our majority shareholder, had executed a sale and purchase agreement with Nipco Investments Limited for the acquisition of EMOCs entire 60 percent equity ownership in Mobil Oil Nigeria Pic, we have received notice from EMOC that a formal application has been filed today by Nipco Investments with the Securities and Exchange Commission (SEC) for an ‘Authority to Proceed’ with the acquisition.

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“In light of this filing, EMOC has consequently advised us of the following material commercial information relating to the proposed acquisition, which we would immediately like to furnish to the Nigerian Stock Exchange and the market generally: the acquisition of EMOCs 216,357,157 ordinary shares in Mobil Oil Nigeria Pic will be for the consideration of $301,000,000.00 USD subject to price adjustments for dividends and other factors.”

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At the close of activities at the stock market on Tuesday, the shares of Mobil Oil appreciated by N22.48k to close at N241.89k per share, leading the gainers’ chart.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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