Fakoyejo OlalekanIgnite Investments & Commodities Limited has informed Ardova investors that the majority shareholder is willing to buy their stake for N17.38 per share to take the company private.
In a statement dated 6 February 2023, Ardova said Ignite Investments has made its intention known to the Board of Directors to acquire the 25.9 per cent or 970.7 million units of shares held by the investing public.
This offer comes four years after Ignite Investments, owned by AbdulWasiu Sowami, bought a 74.02 per cent stake in Ardova, formerly known as Forte Oil, from businessman, Femi Otedola.
The current minority shareholders will be paid N16.8 billion for their shares, which will give Ignite Investments 100 per cent control over Ardova.
“Ardova PLC (“Ardova” or the “Company”) has notified Nigerian Exchange Limited (“NGX”) that Ignite Investments & Commodities Limited has approached the Board of Directors of the Company with an intention to acquire the shares held by other shareholders of the Company at an offer price of ₦17.38 per share, and subsequently delist the Company from NGX (the “Proposed Transaction”).
“The offer price of ₦17.38 represents a premium of 22.44% and 24.38% to the 30-day and 60-day volume weighted average share price of ₦14.19 and ₦13.97 respectively, on 30 November 2022 (being the last trading day prior to the Offer),” Ardova said in the statement.
Ardova also informed shareholders that: “It is intended that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.
“The Proposed Transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the Company. The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court Ordered Meeting. If the conditions of the Proposed Transaction are satisfied and same is sanctioned by the Federal High Court, the Company would be delisted from NGX.
“Further developments will be communicated to shareholders in due course. Ardova Shareholders and members of the public are advised to exercise caution in dealing in Ardova’s shares until further information is provided.”
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