Ignite Investments increase buyout price of Ardova shareholders

The majority shareholder in Ardova Plc, Ignite Investments & Commodities Limited, has increased the buyout price offered to minority investors in the oil company.

In a corporate document obtained on Monday from the Nigerian Exchange Limited (NGX), dated June 2, 2023, Ardova disclosed that the minority shareholders will be paid N17.88 kobo per share.

This is N0.5 kobo higher than the N17.38 kobo previously offered in a corporate document announcing Ignite Investments’ takeover bid in February 2023.

The new buyout share price was considered and passed during Ardova’s Court Ordered Meeting on May 31, 2023.

“At the meeting, the members considered and duly passed the following resolutions: That, subject to the sanction of the Court and delivery of the sanction for registration at the Corporate Affairs Commission:

“(a) as consideration for the transfer of the Scheme Shares (as defined in the Scheme Document), each Scheme Shareholder (as defined in the Scheme Document) shall receive ₦17.88K per Scheme Share held by such Scheme Shareholder.

“(b) as a result of the Scheme, the legal and beneficial ownership of the Scheme Shares be transferred to Ignite Investments & Commodities Limited,” the document reads.

This is N0.58 kobo or 3.35% higher than the current market price for Ardova’s share, which is N17.3 kobo as of last week Friday, but significantly below its 52-week high of N26.4 kobo per share.

Ardova further stated that: “the Board of Directors of the Company be and are hereby authorised to consent to any modifications of the Scheme of Arrangement that the SEC and/or the Court may deem fit to impose and approve;

“That, the Board of Directors of the Company be and are hereby authorised to take all actions deemed necessary to give effect to the aforementioned resolutions of the Company or as may become necessary to put the Scheme of Arrangement into effect.”

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