Ardova Reacts To Takeover Threat, As Majority Investor Faces Lawsuit

Oil and gas firm, Ardova, has denied it is winding up, after Femi Otedola’s Zenon Petroleum and Gas Limited filed a case against its majority shareholder, Prudent Energy & Services Limited (PESL).

In 2019, Otedola had sole his 74.02% stake in Ardova to AbdulWasiu Sowami, owner of Prudent Energy, and Ignite Investments and Commodities Limited. The transaction was valued at $200 million.

Part of the acquisition reportedly stipulates that Prudent Energy will pay a balance of $6 million at a later date, but not after June 18, 2022. However, Sowami has been unable to meet the debt obligation.

This allegedly compelled Otedola to seek redress in court, filing a wind up lawsuit against Prudent Energy, in a bid to takeover the shares of the investment firm in Ardova.

In a statement addressing the debt issue between Otedola and Sowami, Ardova, which was previously known as Forte Oil prior to the deal, said both parties will settle amicable, and the faceoff doesn’t affect Ardova’s operation.

“Attention of the Management of Ardova Plc (Ardova or the Company) has been drawn to news circulated in various media publications on 8 August 2022, which seem to include Ardova Plc in a report of a “charge” to wind-up Prudent Energy & Services Limited (PESL) over an alleged inability to pay $6 million debt presented to the Federal High Court by Zenon Petroleum and Gas Limited (Zenon).

“Ardova Plc hereby states that the story is misleading and presents the facts of the matter as follows:

“(i)The issues relate to the claims and warranties under the Share Purchase Agreement (“SPA”) between Ignite Investments and Commodities Limited (“Ignite”) and Zenon together with its affiliates for the acquisition of shares in Forte Oil Plc (now Ardova Plc).

“(ii)There are no claims against Ardova Plc as an entity. There are no winding-up petitions threatened or filed against Ardova Plc in respect of these issues or any other issue.

“(III) For the avoidance of doubt, Ardova Plc is not a party to any of the proceedings and the proceedings neither affect Ardova Plc’s rights nor create any liability for Ardova Plc in any way.

“However, the Company has faith in the dispute resolution process and believe it will culminate in a just resolution of the issues. Ardova wants to avoid being drawn into a media spectacle and consider it important to clarify that this report relates to a dispute between former shareholders and a current shareholder and has nothing to do with Ardova Plc as a separate entity.” The statement reads.