Forte Oil Plc, on Monday notified shareholders, the Nigerian Stock Exchange (NSE), the Securities & Exchange Commission (SEC) and other stakeholders that Femi Otedola, its chairman and majority shareholder recently struck a deal to divest his entire direct and indirect stake in the company’s downstream business.
Otedola, the company wrote, struck a deal with the Prudent Energy team, investing though Ignite Investments & Commodities Limited, “pursuant to his decision to expore and maximize business opportunities in refining and petrochemicals.”
According to the statement by Akinleye Ologbende, FO’s General Counsel, the transaction is expected to close in the first quarter of 2019, subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.
Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP served as Financial & Legal advisors respectively to Otedola; while PricewaterhouseCoopeers and Stanbic IBTC Capital Limited served as joint financial advisors and Sefton Fross served as legal advisor to Ignite Investments & Commodities Limited
Reacting to the deal, analysts at Arthur Stevens Assets Management Limited believes it “may ignite increased selloffs on FO in the coming days.”