Forte Oil Shareholders Told to Suspend Proposed Sale of Shares

August 31, 2019

By Dipo Olowookere

Shareholders of Forte Oil Plc intending to sell their shares to a major investor in the company, Ignite Investments and Commodities Limited, have been told to pause the action for now.

Ignite Investments is proposing to buy up to 500,000 units of the energy company’s shares from shareholders at the price of N66.25k per unit. The total number of units to be purchased makes up 0.04 percent equity stake.

This offering is coming few months after the same investor acquired 75 percent equity holding of the former owner, Mr Femi Otedola.

Forte Oil, in a notice to the Nigerian Stock Exchange (NSE), which was signed by its acting secretary, Oladeinde Nelson-Cole, explained that it was asking those intending to sell their shares to Ignite Investments in the new offering to take no action on it for now because approvals have not been received from the regulatory agencies of the capital market in Nigeria.

The company said the proposed offer was still under review by the relevant regulators and has not been formally launched.

“This is to clarify to shareholders of Forte Oil that the proposed offer by Ignite Investment and Commodities Limited to other shareholders of Forte Oil is still under review by the relevant regulators and has not been formally launched. As such, shareholders are advised to take no action in respect of the proposed offer at this time,” the disclosure said.

The energy firm stated that, “Shareholders will be appropriately notified (in line with regulatory requirements) by Ignite Investments of the formal launch date.”

It said, “This will happen following the receipt of the requisite regulatory approvals from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).”

In addition, Forte Oil said, “The final version of the bid document (following its registration by the Securities and Exchange Commission) will be circulated to all shareholders when the proposed offer is launched.”

It noted that, “This document will outline steps that will be required to be taken by shareholders who wish to participate in the propose offer as well as key dates and timelines.”

Business Post reports that as at the close of business on the NSE on Friday, shares of Forte Oil were traded at N16.45k per unit after recording no movement.

Dipo Olowookere

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 [email protected]

Leave a Reply

New Access Bank logo
Previous Story

Expect Our 2019 Half Year Results Sept 15—Access Bank

crude oil
Next Story

Oil Gives up Early Gains as Brent Drops to $59, WTI to $55

Latest from Economy

Don't Miss