In the aftermath of its successful held N7bn bond issue, the board of C&I Leasing, on Thursday said it has concluded the buyout of the 27.5% minority stake in a Joint Venture- C&I Petrotech Marine Limited.
This, the company told the Nigerian Stock Exchange (NSE), transforms Petrotech Marine, which has six vessels presently deployed to a long-term contract with Shell Petroleum Development Company (SPDC), to a wholly owned subsidiary.
The N7bn bond issue is the first of a N20bn debt issuance progamme which it said would be used largely to invest in business expansion and restructuring of its debts over a five-year period, among others. The overall objective of this and other initiatives, the company continued, is to guarantee increased profit margins and returns on investment to shareholders, just as it is evidence of the company’s commitment to investing in its business growth and expansion.
The statement by Mbanugo Udenze & Co, its company secretary, quoted Andrew Otike-Odibi, managing director of C&I Leasing as recalling that the company’s forage into the nation’s maritime sector as a service provider for oil and gas operators started 10 years ago “through the C&I Petroteh Marine Joint Venture in 2010.”
Over the years, this and other strategic initiative, Otike-Odibi continued has resulted C&I Leasing’s ownership of over 20 vessels, “consisting of crew boats, pilot boats, tug boats, patrol boats and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.”
This level of investment, he continued, “clearly reiterates our commitment to growing our marine service business and gaining leadership in the field,” expressing hopes that the buyout will further the company’s drive to restructure and reposition its marine business for enhance profitability.