Ardova close to exiting Nigerian Exchange as shareholders accept N17.4 billion buyout

From Abubakar Yunusa Abuja

Ardova Plc reached the critical stage of delisting its shares from the Nigerian Exchange after a buyout agreement that will see minority shareholders get 2.9 per cent more than the settlement price the acquiring investor initially offered them.
“Each scheme shareholder (as defined in the scheme document) shall receive ₦17.88K per scheme share held,” the energy firm stated in the outcome document of a court-ordered meeting released on Monday.
Businessman Abdulwasiu Sowami, who already owns an indirect stake of 74.1 per cent in the company, had early this year tendered N17.38 per unit (premium inclusive) for all the 970.7 million shares held by other shareholders.
The latest contract means Mr Sowami will pay N17.4 billion compared to the N16.9 billion proposed before the two sides held talks.
Consummating the deal will mark the exit point for Ardova from the Nigerian bourse, fifty-three years after its precursor African Petroleum was admitted to the stock market in Lagos.
Ardova’s decision to go private continues a worrisome trend of oil & gas companies dumping Africa’s second-biggest stock exchange, with 11 Plc (formerly Mobil Nigeria) quitting two years and oil driller Oando now set to go that way.
Last month, Rak Unity Petroleum, the first indigenous company to be quoted on the exchange, made the last call to pay shareholders off as it went into liquidation.
“The legal and beneficial ownership of the scheme shares (will) be transferred to Ignite Investments & Commodities Limited,” Ardova said in the document, referring to Mr Sowami’s nominee company.
The timing brings the right circumstances to the acquirer to bolster revenue and unlock more excellent value in the energy industry.
It also coincides with the latest deregulation reform by Africa’s largest economy, terminating the state oil company’s monopoly of importing fuel.
In the spirit of a liberalised market, NNPC Limited is aborting its fuel-for-crude swap arrangement with traders with hints that indigenous oil companies could start importing petroleum products this month.