Ardova to Acquire Enyo for Downstream Business Expansion

Enyo Retail and Supply

By Dipo Olowookere

The management of Ardova Plc is looking to boost the revenue of the company, which will in turn make shareholders get more value for their investment.

On Wednesday, the firm said it was discussing with a retail and supply company in the downstream sector in Nigeria, Enyo Retail and Supply Limited, for a possible acquisition.

Ardova is a big player in the ecosystem and with the acquisition of Enyo, it hopes to further increase its share of the market.

In a statement today, the energy firm described Enyo as a technologically driven player currently operating over 90 stations across the country, attending to over 100,000 retail customers daily across 15 states of Nigeria.

According to the chief executive of Ardova, Mr Olumide Adeosun, after the acquisition of Enyo, which should be completed in the first quarter of 2021, the brand would be retained and it would operate side-by-side with Ardova.

It is not certain if this promise would be fulfilled because after Ardova acquired Forte Oil from Mr Femi Otedola in 2019, it promised to retain the brand name, but it later reneged.

“Ardova Plc (AP), a leading Nigerian integrated energy company, and the shareholders of Enyo Retail and Supply Limited have entered discussions relating to AP acquiring Enyo.

“Enyo is one of the newest and fastest-growing retail and supply companies in the downstream sector.

“Enyo is a technologically driven player and currently operates over 90 stations across Nigeria attending to over 100,000 retail customers daily across 15 states of the country.

“This announcement is pursuant to the acceptance in principle of AP’s offer and acquisition framework by the shareholders of Enyo, it is subject to the successful completion of a due diligence exercise and the receipt of all required regulatory approvals,” the statement signed by the acting company secretary/General Counsel for Ardova, Mr Oladeinde Nelson, said.

In the statement sent to the Nigerian Stock Exchange (NSE), the CEO of AP was said to have stressed that parties were committed to concluding the deal by the end of Q1 2021, promising to provide further information on progress made on the proposed acquisition.

Business Post observed that lately, shares of Ardova have been witnessing an upward movement and today, it was not a different story as the equities appreciated by 1.52 per cent or 30 kobo to close at N20 per unit.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

more recommended stories

%d bloggers like this: