Seplat Chief Executive Officer, Roger Brown, the chairman, ABC Orjiako and other investors in the company lost 6% of their investment in four days, as the firm’s control damage over ExxonMobil acquisition deal failed to appease Nigerian investors.
The company’s share had started the week at N990 per share, but within four days, Seplat asset in the Nigerian capital market slumped to N930 on Thursday, after trading flat at N960 between Tuesday and Wednesday.
The 6% dip in the asking price of Seplat was occasioned by sell off among shareholders, as investors became wary of the oil & gas company’s future revenue generation, following uncertainty surrounding its deal with ExxonMobil.
Ripples Nigeria had reported that Seplat announced on February 25, 2022, that its management acquired Mobile Nigeria Producing Unlimited from ExxonMobil, with the deal awaiting government approval.
However, since the deal was announced, there have been several reports that the acquisition might fall through due to regulator, Nigerian National Petroleum Corporation (NNPC) Limited blocking the sales.
Some of the reasons reported included NNPC’s interest to takeover ExxonMobil’s share by triggering it’s right of refusal as co-investor in MNPU, as well as demanding decommissioning of the oilfield before sale can be approved.
Since the reports came out, investors’ view over Seplat has been bearish, resulting to a sell off, after the acquisition announcement had propelled the bulls towards Seplat’s stock.
While Seolat has come out to deny those claims, the denial seems to be having no effect on the capital market’s sentiment towards the firm, as the asking price for the share continued to drop.
The 6% decline represents N35.30 billion loss in Brown, Orjiako and other shareholders total investment in Seplat, which is now down to N547.25 billion, against the N582.56 billion they held at the opening of the capital market on Monday.
Join the conversation
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.
INVESTIGATION: How roadside foods endanger consumers’ life with trans fat in northern Nigeria
With an estimated 854,000 deaths in Nigeria, and 3,229 attributed to trans fatty acids (TFA) -related cardiovascular deaths, ADESOLA IKULAJOLU visited Nigeria’s...
INVESTIGATION: Untold story of Ondo oil producing communities battling poor health system
Access to quality healthcare is one of the nightmares of communities in Ilaje local government area of Ondo State. Despite...
FEATURE: Ogun residents, waste collectors trade blames, as refuse litter environment
TIJANI ABDULKABEER, a journalist from the University of Ibadan, during a recent trip to Sango Otta, Ogun State took a look...
INVESTIGATION: How online fraudsters siphon victims’ funds through ‘SportyBet’ platform
As Nigeria transits into a cashless society, the evolution also creates opportunities for internet scammers to take advantage of unsuspecting...
SPECIAL REPORT: Enugu govt watches as waste takes over state, threatens public health, environment
In this report, Arinze Chijioke looks at how delays in evacuation of waste in Enugu State encourages indiscriminate waste disposal, its health implications, and how...