Tuesday, April 4, 2017 8:15 AM/ Cordros Capital
Following the approval of the Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE), NIPCO Investments Limited (NIPCO), a wholly owned subsidiary of NIPCO Plc, in a trade executed on the floor of the Nigerian Stock Exchange on Friday 31st March 2017, completed the acquisition of ExxonMobil Oil Corporation’s stake in Mobil Oil Nigeria Plc (NSE: MOBIL), in a deal worth N90 Billion and one of the biggest in the downstream sector in recent years.
CORDROS Securities Limited acted as the Execution Stockbroker to both ExxonMobil Oil Corporation and NIPCO Investments Limited for this transaction.
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 initiative of the Federal Government of Nigeria in the downstream oil and gas industry. Also, this strategic move by NIPCO will ensure the continuous growth and expansion of its Nigerian retail footprint, increase efficiency gains (economies of scale) whilst adding tremendous value to the downstream sector as a result of this notable transaction.
NIPCO is required, by The Investment and Securities Act, to make a takeover bid to all minority shareholders of Mobil Oil Nigeria Plc, having acquired 60% of MOBIL shares.
Our correspondence has gathered from reliable sources that the Board of NIPCO has made an application to SEC for a Takeover 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 currently trade at N300 in the stock market, this is a 40% premium to existing shareholders.
NIPCO, (previously called IPMAN Petroleum Marketing Company Limited), was incorporated on 8th January 2001 as an indigenous oil and gas company operating in the downstream sector of the Nigerian oil and gas industry. NIPCO Plc is committed to meeting the needs of all stakeholders in the deregulated downstream sector of the Oil & Gas industry by providing quality services in petroleum product storage and handling in an environment that is friendly, safe and dignifying and become an integrated Oil & Gas company by venturing into the upstream sector.
ExxonMobil Oil Corporation (EMOC) evolved from a regional marketer of kerosene in the United States of America (“US”) to the largest publicly traded petroleum and petrochemical enterprise in the world. EMOC operates in most countries in the world and is best known by its familiar brand names: Exxon, Esso and Mobil. The Company makes the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. EMOC is the world's biggest publicly traded oil and gas company, and one of the world's biggest companies in any industry.