Forte Oil Seeks Approval to Acquire Downstream Assets
By Dipo Olowookere
The board of Forte Oil Plc has announced that it would seek for an approval of the company’s shareholder to acquire some downstream assets.
Business Post reports that this authorisation would be sought for at the energy firm’s Annual General Meeting (AGM) slated for next month in Lagos.
In a notice to the Nigerian Stock Exchange (NSE) on Friday, Forte Oil said these assets would be purchased from a company known as Prudent Energy & Services Limited.
Business Post gathered that Mr Abdulwasiu Sowami, who recently acquired Forte Oil from Mr Femi Otedola is the brain behind Prudent Energy & Services Limited. He is currently the Chairman of both Forte Oil and Ignite Investments and Commodities Limited.
In the disclosure, the company said its AGM is scheduled to take place on Tuesday, September 3, 2019 at 10am at Bespoke Event Centre, Lekki-Ajah Expressway, Lagos.
The board said at the gathering, the shareholders would be requested to pass the resolution that “the company enter into discussions with Prudent Energy & Services Limited and or any company or individual(s) representing it in connection with the acquisition of identified downstream assets including but not limited to plant and machinery, trucks, stations and subject to independent valuations on fair value, enter into subsequent binding agreements on comparable arm’s length/commercial terms in relation to the assets to be acquired.”
In addition, they would be expected to give authority to the directors and/or management of the company “to approve, sign and/or execute all documents, appoint such professional parties and advisers, as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority and all acts carried out, steps taken and documents executed (or to be executed) by the directors and/or management of the company in connection with the above resolutions.”
Apart from these, the board would want the shareholders “to renew the general mandate authorizing the company to enter into recurrent transactions which are of a trading nature or those necessary for its day to day operations with related parties or companies in accordance with the rules of the Nigerian Stock Exchange governing transactions with related parties or interested persons.”
The notice further stated that the board would use the opportunity of the AGM to present the company’s financial statements for the year ended December 31, 2018 as well as the report of the auditors and audit committee.