Forte Oil Seeks Shareholders’ Approval to Acquire Downstream Assets

In apparent move to implement its expansion and diversification plans, Forte Oil Plc is seeking the approval of shareholders to acquire some downstream assets.

The new management of Forte Oil, which assumed office last June, had signified intention to invest massively in the downstream sector to achieve desired growth.

According to the Chief Executive Officer of Forte Oil Plc, Mr. Olumide Adeosun, despite the regulated price of petrol product in the country, Forte Oil would still break even in other petroleum products in the downstream sub-sector.

As part of efforts to implement that growth strategies, the company is asking the shareholders to allow it 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.

The company is also asking that the directors and/or management of the company be authorised 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.

The shareholders are expected to give the approval at the forthcoming annual general meeting (AGM) slated to hold in Lagos on September 3, 2019.