Otedola sells shares in Forte Oil’s fuel, upstream businesses
The Chairman of Forte Oil Plc, Mr Femi
Otedola, has announced the completion of the sale of all his shares in
the firm’s downstream and upstream businesses.
Forte Oil had disclosed on December 24,
2018, the divestment by its majority shareholder, with Otedola saying he
had reached an agreement with the Prudent Energy team, investing
through Ignite Investments and Commodities Limited, to divest of his
full 75 per cent direct and indirect shareholding in the company’s
Otedola, on his verified Instagram
handle on Wednesday, said he had exited the downstream and upstream
sub-sectors of the oil and gas industry but he did not disclose the
buyer of his stakes in the upstream business.
He said, “A few years ago, my team and I
embarked on an arduous task of transforming a moribund petroleum
marketing business, African Petroleum Plc (formerly British Petroleum)
into Forte Oil Plc – a leading integrated solutions provider with solid
footprints in downstream petroleum marketing, upstream services and
power generation and one in which we built intrinsic value to the
benefits of our shareholders.
“In line with my principle of business
focus, we have divested from our marketing and upstream businesses and
shall from now on focus and consolidate on the gains of our power
generation business, Geregu Power Plc.
“We wish our successors the very best and urge them to build on our legacies, which have been established since 1964.”
The divestment comes more than three years after the firm sold 17 per cent of its equity to a Swiss oil trading firm.
Forte Oil emerged the biggest gainer at
the end of trading on the NSE on Wednesday as its share price rose by 10
per cent to close at N34.65.
In October 2015, the firm announced that
the Mercuria Energy Group Holdings SA had acquired 17 per cent of its
equity, valued at $200m.
Source: Punch, 20 June, 2019