Ardova Considers N60bn Bond Sale

By Dipo Olowookere

An energy company in Nigeria, Ardova Plc, is considering approaching the local debt capital market to raise fresh funds worth N60 billion.

The company announced its intention to borrow the funds in a notice to the Nigerian Stock Exchange (NSE) and the investing public.

The disclosure came hours after Business Post published a report that the company was looking to raise capital to acquire a player in the downstream oil sector in Nigeria, Enyo.

Enyo is a company with over 90 retail outlets in about 15 of the 36 states of the federation and to expand its share in the space, Ardova wants to fully take control of Enyo.

Recall that in 2019, Ardova acquired over 70 per cent stake in Forte Oil from oil mogul, Mr Femi Otedola, the son of a former Governor of Lagos State, Mr Michael Otedola.

At an analyst call for its 2020 financial results, the company said its proposed acquisition of Enyo would be funded by debt and equity.

Some hours after our report, the board announced that it hopes to float a bond programme worth N60 billion and would likely be issued in tranches.

“Ardova Plc hereby notifies the Nigerian Exchange Regulation Limited and the general public of the proposed establishment of a N60 billion bond issuance programme by the company and potential issuance of series of bonds under the programme,” a part of the disclosure said.

However, Ardova emphasised that, “The final decision to proceed with the proposed transaction will be subject to market conditions and the specific details of the proposed transaction will be disclosed in the appropriate transaction documents at the relevant time.”

It further stressed that, “Potential investors are advised that nothing in this announcement shall constitute an offering of any securities once and if the programme is established.

“Any decision to participate in and subscribe for bonds under the proposed transaction will be made based on the investor’s review of the information contained in and incorporated by reference into the shelf prospectus and pricing supplement to be published and after due consultation with its stockbroker, solicitor, accountant, banker or an independent investment adviser.”