Seplat Energy in bid to acquire ExxonMobil asset amid N15.41bn loss

Seplat Energy Plc is in a competitive bid to acquire the Nigerian shallow water business of Exxon Mobil, a disclosure that prevented the firm’s stock from further depreciation.

In a filing to the Nigerian Exchange Group, Seplat Energy said it was not alone in the proposed deal, as the oil and gas company was holding the discussion alongside an unnamed partner.

With deliberation still ongoing, Seplat Energy warned that the outcome of the acquisition process is not certain, the firm’s Chief Financial Officer, Emeka Onwuka, said.

“Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, notes the recent press speculation and confirms that Seplat Energy, together with a partner, is in competitive discussions to acquire ExxonMobil’s Nigerian shallow water business. Deliberations are ongoing and accordingly, there can be no certainty as to the outcome.” the NGX filing reads.

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Seplat Energy, which is listed on Nigerian bourse and the London Stock Exchange, said its decision around the part acquisition of ExxonMobil business will be guided by regulatory rules.

“A further announcement will be made as and when appropriate, in line with regulatory requirements.” Seplat Energy said following negative reaction from the capital market last week amid the speculation.

The stock of Seplat continued to trade flat upon the announcement of a potential acquisition after business hours today. The share had tumbled 3.63 percent at the end of trading session last week, when it closed the week at N695 per share on Friday, against Monday’s N721.2kobo per share.

This caused shareholders to lose N15.41 billion from their total investment in Seplat last week, but trading on the stock this week remained flat at N695 per share.

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