Ardova Plans Exit from Stock Exchange, as Ignite Wants Minority Investors Out

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited will soon lose another member if plans by the majority shareholder of Ardova Plc, Ignite Investments & Commodities Limited, go through.

Ignite, which purchased a 75 per cent stake in the defunct Forte Oil from Mr Femi Otedola in December 2018, wants to acquire the stakes held by minority investors in the company.

In a regulatory statement on Monday, Ardova disclosed that Ignite is offering to buy the stocks at N17.38 per unit, representing a premium of 22.44 per cent and 24.38 per cent to the 30-day and 60-day volume weighted average share price of N14.19 and N13.97 respectively, on November 30, 2022, being the last trading day prior to the offer.

However, this proposal is subject to the review and clearance of the Securities and Exchange Commission (SEC) and the approval of the shareholders of the company at a court-ordered meeting (COM).

“Ardova PLC has notified Nigerian Exchange Limited that Ignite Investments and Commodities Limited has approached the board of directors of the company with an intention to acquire the shares held by other shareholders of the company at an offer price of N17.38 per share and subsequently delist the company from NGX.

“The offer price of N17.38 represents a premium of 22.44% and 24.38% to the 30-day, and 60-day volume weighted average share price of N14.19 and N13.97, respectively, on 30 November 2022 (being the last trading day prior to the offer).

“It is intended that the proposed transaction will be implemented under a scheme of arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.

“The proposed transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the company.

“The terms and conditions of the proposed transaction will be provided in the scheme document, which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting.

“If the conditions of the proposed transaction are satisfied and the same is sanctioned by the Federal High Court, the Company would be delisted from NGX.

“Further developments will be communicated to shareholders in due course. Ardova shareholders and members of the public are advised to exercise caution in dealing in Ardova’s shares until further information is provided,” the disclosure signed by the company secretary, Oladeinde Nelson-Cole, said.