By Modupe Gbadeyanka
An indigenous company, Pinnacle Oil and Gas Limited, is interested in acquiring a total of 6 billion shares of Capital Oil Plc.
Pinnacle Oil and Gas, according to information revealed by Capital Oil, is willing to pay N600 million for the deal through a private placement. This amounts to 10 kobo per share of the firm, which is listed on the Nigerian Stock Exchange (NSE).
However, before the transaction can be completed, shareholders of Capital Oil Plc will have to give their approval.
To make this happen, the board of Capital Oil has announced its intention to hold an Extraordinary General Meeting (EGM) on Thursday, July 26, 2018, at the Dover Hotel in Ikeja, Lagos.
According to Capital Oil, the shareholders, during the meeting, will consider, if thought fit, to modify, pass and ratify an earlier resolution for the sale of some shares of the company.
Business Post reports that at the Annual General Meeting (AGM) of Capital Oil held on December 14, 2016, the shareholders had resolved that 3.38 billion unalloted/or treasury ordinary shares of the firm be sold to willing and interested investors subject to the approval of the appropriate regulatory authorities.
But at the EGM fixed for next month, the board wants the shareholders to modify the above resolution to “that 6 billion unalloted/or treasury ordinary shares [of Capital Oil Plc] be sold to willing and interested investors by private placement subject to the approval of the appropriate regulatory authorities.”
According to the statement issued Capital Oil, the shareholders would also be required to agree that, “That the offer of the 6 billion unalloted/or ordinary shares made by the board of directors to willing and interested investors subject to the approval of the appropriate authorities be and is hereby ratified.
“That Pinnacle Oil and Gas Limited be accepted as a willing and interested investor for the acquisition of the said 6 billion ordinary shares.
“That the 10 kobo per share offer made by Pinnacle Oil and Gas Limited amounting to N600 million be accepted by the company and its shareholders.”
Business Post reports that a private placement is the sale of stocks, bonds, or securities directly to a private investor, rather than as part of a public offering.
As at the time of filing this report, the price of Capital Oil on the floor of the NSE was 33 kobo per share. The firm has a market capitalisation of N1.9 billion
Adedapo Adesanya