Minority shareholders get lifeline in NIPCO-Mobil N4.9bn takeover bid

Minority shareholders of Mobil Oil Nigeria Plc have been granted a longer period to participate in the ongoing N4.9 billion mandatory tender offer (MTO) by NIPCO Investment Limited, the new majority core investor in Mobil Oil Nigeria Plc.

Amidst claims of underhand dealings at the rushed closing of the MTO on Friday June 30, 2017, Securities and Exchange Commission (SEC) has now granted extension of the offer period to July 27, 2017.

Stockbroker to the offer, Cordros Securities, confirmed the extension in a regulatory filing at the Nigerian Stock Exchange (NSE).

NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, had bought 60 per cent majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc following approval of the $301 million acquisition deal by Nigerian capital market regulators.

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The completion of the acquisition however triggered a mandatory tender offer (MTO) bid by NIPCO for the minority shareholders in line with Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

Under the terms of the MTO, NIPCO is expected to offer to buy the minority shares at the same price of N417.12 used under the ExxonMobil transaction.

NIPCO subsequently launched an MTO for 11.644 million ordinary shares or 3.23 per cent equity stake in Mobil Oil Nigeria.

With the extension, minority shareholders will be able to sell their own shares to NIPCO at the acquisition price of N417 per share as against Mobil Oil Nigeria’s share price of about N240 per share at the Exchange.

 

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