Business
ExxonMobil to divest 60% equity stake in Mobil Nigeria
The American oil giant, ExxonMobil Oil Corporation has reached firm agreement to sell its majority equity stake of 60 per cent in Mobil Oil Nigeria Plc to a Nigerian indigenous firm, Nipco Plc.
In a regulatory the firm filed Wednesday at the Nigerian Stock Exchange (NSE), Mobil Oil Nigeria confirmed that it has received the communication of the divestment plan from ExxonMobil Oil Corporation.
Under the deal, ExxonMobil Oil Corporation will sell its majority equity stake of 60 per cent to Nipco Investments Limited, a wholly-owned subsidiary of Nipco Plc. However, the deal is still subject to approvals of the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and other regulatory agencies.
Market sources said they expected regulatory authorities to issue “no objection” clearance to the deal, citing similar divestment by Oando Plc of its downstream and midstream oil and gas assets.
Formerly known as IPMAN Petroleum Marketing Company Limited (IPMCL), Nipco was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) on January 8th, 2001 as a private limited liability company to participate in the distribution of white petroleum products business in Nigeria.
Read also: African airlines dump Nigeria as West African hub
Mobil Oil Nigeria was incorporated as a private limited liability company in 1951 and converted to a public limited liability company in 1978. Its shares were listed on the Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America, which holds 60 per cent equity stake.
With more than 200 retail outlets spread across the 36 states of Nigeria and three ultra-modern multi-purpose plants located in Apapa, Lagos State, Mobil Oil Nigeria is one of the dominant petroleum-marketing companies and it particularly holds distinction as the earliest petroleum-marketing company to be incorporated in Nigeria.
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Apachee zooma
October 19, 2016 at 10:20 pm
Very disturbing signal. The message is clear…loss of investor confidence. These guys are living because returns on investment are no longer secure and guaranteed. Now, tell me why anyone will be pleased with the shit people all over the place masquerading as leaders. Change my arse!
yanju omotodun
October 20, 2016 at 7:37 am
I think am against your view. Mind you they are not selling all but 60% equities. Mobil oil or NIPCO buying this , gives Nigeria a large opportunity to invest big time in the oil market with all dividends or profit accruable to Nigeria. And also I am sure in a longer run, all the equities will be ours.
Olawale james anifowoshe
October 20, 2016 at 8:08 am
the situation of our econmy is forcing alot of corporations out of business. NIPCO will spend a whole lot but it might pay off later when the economy is stable
Animashaun Ayodeji
October 20, 2016 at 8:50 am
We need to give more rooms to indigenous firms for better operations. I’d like to see more local firms acquire big firms like MTN, DSTV and others too.
princewill ebuka
October 20, 2016 at 9:24 am
i dnt agree with you, personally i feel our indigenous firms might not keep up with the professionalism exhibited by firms like Exxon Mobil. Nipco buying 60% of their shares isnt good thing
JOHNSON PETER
October 20, 2016 at 3:40 pm
Nipco shouldn’t buy the 60% equities now from Exxon Mobil in this recession period, they should wait until when the economy is stable and buoyant then the deal can now come in , because I don’t trust this foreign companies.
Roland Uchendu Pele
October 20, 2016 at 5:26 pm
We are yet to hear a good news about the economy. It’s not looking like an appreciation of any kind will be coming our anytime soon.