Forte Oil Suspends Plans to Raise N20b Via Book Building

By Modupe Gbadeyanka

The board of directors of Forte Oil Plc has announced the suspension of plans to raise N20 billion from the capital market.

In June this year, Forte Oil said it was planning to raise N20 billion from foreign investors as a public offer for shares through a book building process to help price discovery.

It then said it had applied to the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for approval.

But in a statement issued today, the oil firm owned by Mr Femi Otedola, disclosed that it has received SEC approval to go on with the exercise.

“Forte Oil Plc wishes to notify the Nigerian Stock Exchange, investing public and its stakeholders that the Securities and Exchange Commission (SEC) has approved the company’s proposed offering by way of Book Building,” the statement said.

However, in the same statement, the firm said its board “has taken a strategic decision to put the offering on hold pending the conclusion of an ongoing corporate restructuring with respect to maximizing the emerging opportunities in the Nigerian energy sector (Oil, Gas and Power) which will be to the ultimate benefit of all our stakeholders.”

It added that, “Further to the above, we would keep you updated on the group’s decision in this regard.”