We’ll continue to act in shareholders’ interest, says Lekoil

LEKOIL Limited has requested its shareholders to disregard the recent statement issued by Lekoil Nigeria and contact it if they have any queries about its operations.

In a statement titled ' Litigation Summary and Response to Lekoil Nigeria announcement', Lekoil, an oil and gas exploration and production company with a focus on Nigeria and West Africa, described Lekoil Nigeria's suits against it in Nigeria, the United Kingdom, New Jersey and Cayman Islands as obstructionist.

It reiterated that it would not be intimidated by the actions of Lekoil Nigeria and its Chief Executive Officer, Lekan Akinyanmi, adding that their action is a "strategic objective of blocking the Company's legitimate activities and thereby reducing shareholder value”.

The company's Interim Executive Chairman, Anthony Hawkins, explained: "The litigations brought by Mr. Akinyanmi ( funded by Lekoil Nigeria), along with Mr. Akinyanmi's refusal to repay his CEO loan, make clear that Mr. Akinyanmi, supported by Lekoil Nigeria, is determined to try to frustrate the proper operations of the company as approved by the majority of its shareholders.

“These legal claims have been instigated and pursued despite the fact that Lekoil Nigeria's offer to purchase shares in the company was not accepted by the vast majority of the shareholders; the Savannah Energy Transaction was supported by the company's major institutional shareholders, representing approximately 42 per cent of the company's then- current issued share capital; the entry into the Option Agreement with Savannah Energy was supported by 82 per cent of shareholders at the extraordinary general meeting held on April 7, 2022 ( the option agreement being an integral part of the Savannah Transaction) and the issuance of additional shares in the Company was supported by 70 per cent of shareholders at the extraordinary general meeting held on April 7, 2022.”

Hawkins said the company has taken professional advice in the Cayman Islands and Nigeria and would continue to act in the best interests of all shareholders and not be intimidated by the actions of Akinyanmi and Lekoil Nigeria.

Akinyanmi, a former investment banker based in the United States, founded Lekoil and incorporated it in December 2010 with a holding structure. Lekoil Nigeria emerged as its principal subsidiary.

Lekoil stated that the company is a party to the following legal proceedings. A claim by Mr. Akinyanmi, in the Superior Court of New Jersey, alleging breach of contract in the termination of his employment contract, as further set out in the RNS by the Company dated September, 24 2021.