Management shake up looms at Eterna Plc as many shareholders sell to new investor

A new investor, Preline Limited, has made an offer to acquire Eterna Plc from its seven substantial shareholders, a move that will trigger series of exits among the company’s management.

Preline Limited entered into a sale and purchase agreement with Lenux Integrated Resources Limited, Global Energy & Raw Materials Limited, Meristem Wealth Management Limited to acquire their equity holdings.

Other substantial shareholders expected to sell off their stake include Radix Capital Partners Limited, GASL Nominee Limited, GTI Capital Limited and Cardinalstone Partners Limited.

The agreement will see Preline Limited acquire 794,969,774 shares of Eterna Plc, which represents 60.98 percent in the oil and gas company, and hands the new investor a majority stake.

READ ALSO: Linkage Assurance, Eterna Plc top Ripples Nigeria Stock watchlist

In a filing sent to the Nigerian Exchange Limited, Eterna stated that the company will submit an application to receive authority to proceed from the capital market regulator, Securities and Exchange Commission (SEC).

“A formal application with further details will be filed with the Securities and Exchange Commission (SEC) for an “authority to proceed” with the transaction by the transacting parties.”

Upon completion of the deal, representives of the seven companies are expected to resign from the board, similar to the Ripples Nigeria report on exit of board members in BOC Gases, following TY Danjuma takeover. https://www.ripplesnigeria.com/ty-danjumas-takeover-of-boc-gases-triggers-resignations-among-board-members/

The new investor’s representatives are expected to replace board members from the substantial shareholders, Lenux Integrated Resources Limited, Global Energy & Raw Materials Limited, and others.

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