11 Plc shares lose 30% value over uncertainties
Sh a r e h o l d e r s have continued a dumping spree of the shares of ’11 PLC’ formerly known as Mobil Nigeria Plc due to their apathy toward the new core investors.
The share price of the company which traded at N236.90 kobo as at August 9 when the company made known its change of name, closed at N165.11 kobo at the end of trading yesterday, shedding over 30 per cent since the announcement.
The company which market capitalisation stood at N85.4 billion as at August 9 before the announcement, also shed N25.9 billion, and stands at N59.5 billion as at the close of trading yesterday.
Following the successful completion of the acquisition of the 60 per cent equity of ExxonMobil in Mobil Oil Nigeria Plc by NIPCO Plc, the new owners changed the corporate name of Mobil Oil Nigeria Plc to ‘11plc’, better pronounced as ‘Double One Plc’.
NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, had executed a Sales and Purchase Agreement with ExxonMobil on October 17, 2016 for the acquisition of 216,357,157 shares of Mobil Oil, in a deal worth N90 billion.
The Group Managing Director of NIPCO Plc, Mr. Venkataraman Venkatapathy, said Mobil Oil Nigeria Plc would change its name to 11Plc in furtherance of the agreement with ExxonMobil.
Venkatapathy said NIPCO intends ultimately, that each of the entities will remain and function independently. Running the two entities separately will engender financial and strategic merits.
He assured investors that the company was delighted to be part of the 41,000 shareholders. “To all stakeholders, the company makes a promise that this acquisition shall usher in stability, prosperity, sustainability and growth,” Venkatapathy added.
Mr. John Olabisi, Chief Dealer at Midas Stockbrokers Limited, while reacting to the development said that investors would only put their money where they know value.
He however suggested that, new investors were playing the waiting game, they would get to see the performance of the company at year end before their confidence could be boosted to reinvest in it.