Nipco splashes N135b to acquire ExxonMobil’s 60% stake

Nipco Plc is doling out as much as 159 per cent premium to push through its bid to acquire ExxonMobil Oil Corporation’s 60 per cent equity stake in Mobil Oil Nigeria (MON) Plc.

ExxonMobil and Nipco on Tuesday revealed further details on the acquisition. Under the deal, ExxonMobil will transfer its 60 per cent equity stake consisting of 216.36 million ordinary shares of 50 kobo each to Nipco Investments Limited, a wholly-owned subsidiary of Nipco, for total value of $301 million. The acquisition value of $301 million is equivalent to N135.45 billion at current parallel exchange rate of N450 per Dollar

By the close of transactions at the Nigerian Stock Exchange (NSE) on Tuesday, Mobil Oil Nigeria was valued at N87.22 billion with its total issued shares of 360.6 million ordinary shares of 50 kobo each at N241.89 per share. With this, ExxonMobil’s 60 per cent equity stake would have amounted to N52.335 billion. Mobil Oil Nigeria’s share price rose by 10.25 per cent, the highest allowable percentage price movement band, to close at N241.89 on Tuesday.

In a statement filed at the NSE, chairman and managing director, Mobil Oil Nigeria Plc, Mr. Adetunji Oyebanji, stated that Nipco on Tuesday filed an application with Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), for an “authority to proceed” with the acquisition.

Read also: By 2017, Nigeria has no choice but to export rice, CBN says

ExxonMobil and Nipco had in October executed a sale and purchase agreement (SPA) to sell the former’s majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) to Nipco, an indigenous oil and gas company.

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.

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.

RipplesNigeria ….without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now