NIPCO Completes Acquisition of Mobil Oil Nigeria Plc

NIPCO Investments Limited (NIPCO), a wholly owned subsidiary of NIPCO Plc, has completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc, in a deal worth N90 billion. NIPCO had executed a Sales and Purchase Agreement with ExxonMobil on Monday 17th October, 2016 for the acquisition of the 216,357,157 shares.

The process of consummating the deal has been on since then. However, the deal was concluded last week following the crossing of shares to NIPCO on the floor of the Nigerian Stock Exchange (NSE). The Securities and Exchange Commission (SEC) and NSE have approved the transanction.

Cordros Securities Limited acted as the execution stockbroker to both ExxonMobil Oil Corporation and NIPCO Investments Limited for this transaction.

Market operators sad NIPCO’s acquisition of the majority stake in Mobil will serve as a significant breakthrough, which could bolster investors’ confidence and appetite in the sector, following the deregulation initiativeof and NIPCOgrowth Nigeria “Also,gas and willof industry.the in expansionthis ensurethe Federal strategic downstreamthe of Governmentcontinuousits move Nigerian by oil retail gains adding footprint, (economies tremendous increaseof value scale) efficiencyto whilst the downstreamthis notable transaction,”sector as ana operatorsresult of said. Following the acquisition 60 per cent acquisition, NIPCO is required by the Investment and Securities Act, to make a takeover bid Mobilto To all Oil this minorityNigeriaend, the Plc. shareholdersBoard of NIPCO of is applicationsaid to haveto SEC alreadyfor a made takeoveran bid of minority shareholders stake in Mobil Oil Nigeria Plc and has received SEC’s “Authority to Proceed” with the takeover Bid at the same price of N417.12 the acquisition was carried out.

The shares of Mobil traded closed at ….. currently trade at N300 in the stock market, this is a 40 per cent premium to existing shareholders. The Managing Director Venkataraman-Venkatapathysaid the companyof NIPCO, considered had this Mr. acquisition“It is part an of importantour strategic synergy. move to support Nipco’s continuous growth and expansion of its Nigerian retail footprint. We are confident of adding tremendous value to Mobil Oil Nigeria and likewise Mobil Oil will add a huge value to Nipco. In furtherance of this value addition, Nipco will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under Branding Licence(s) from ExxonMobil,” he said.

Venkatapathy had expressed profound gratitude and appreciation of Nipco to ExxonMobil for selecting the company as the preferred bidder for the acquisition of the shares.

“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset (Mobil Oil), we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” he said.