ExxonMobil Oil Corporation has completed a sale and purchase agreement with Nipco Plc to sell off its majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) Plc to Nipco Plc, an indigenous oil and gas company.Mobil Oil Nigeria and Nipco confirmed the agreement, on Wednesday, October 19.
Mobil Oil Nigeria, which is required as a quoted company to make such disclosure, filed the notification of the divestment at the Nigerian Stock Exchange (NSE) yesterday.
Under the deal, ExxonMobil Oil Corporation will sell its majority equity stake of 60 per cent to Nipco Investments Limited, a wholly-owned subsidiary of Nipco Plc. The deal is still subject to regulatory approvals.
However, such divestment deals, including sales by Oando of its downstream assets, have received clearance from the regulators.
While all the parties were silent on the details of the SPA, The Nation’s check indicated that ExxonMobil will transfer 16.357 million ordinary shares of 50 kobo each to Nipco.
The current market value of the 60 per cent equity stake is N40.24 billion. Mobil Oil Nigeria is valued at N67.07 billion at the NSE, with its total issued shares of 360.6 million ordinary shares of 50 kobo each closing yesterday at N186 per share.
Formerly known as IPMAN Petroleum Marketing Company Limited (IPMCL), Nipco was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) on January 8, 2001 as a private limited liability company to participate in the distribution of white petroleum products business in Nigeria.
Managing director, Nipco Plc, Mr. Venkataraman Venkatapathy, said the SPA marks the beginning of a six-month transition period for the effective takeover of the downstream oil giant.
He said the parties have initiated the process of obtaining regulatory approvals from the Securities and Exchange Commission (SEC) and NSE adding that the transition period will also enable Nipco to effectively manage a smooth and successful completion of the transaction.
Mobil Oil Nigeria was incorporated as a private limited liability company in 1951 and converted to a public limited liability company in 1978. Its shares were listed on the Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America, which holds 60 per cent equity stake.
