Lekoil Nigeria Secures Court Injunction Against Lekoil Limited, Savannah Energy On Share Value Dilution

Following the announcement of 28 February 2022 by Lekoil Limited that it had entered into an agreement with Savannah Energy Investments Limited, a subsidiary of Savannah Energy PLC, Lekoil Nigeria Limited has secured a court injunction  against Lekoil Limited and others, restraining transfer of assets that would alter its ownership structure.

Joined in the matter are  a number of third parties,  including Lekoil Oil & Gas Investments Limited, Mayfair Assets &  Trust Limited, Lekoil 276 Limited and Lekoil Exploration & Production Nigeria Limited.

Lekoil Nigeria had  sought and was  granted the injunction at the Federal High Court Lagos presided over by Justice Y. Bogoro particularly restraining Lekoil Limited and Savannah Energy Investments Limited from taking any steps in furtherance of the transfer of any interests in oil and gas assets of Lekoil  Nigeria Limited and the transfer or creation of any interest in Lekoil Nigeria Limited, that will alter the ownership, equity or  share capital structure of Lekoil Nigeria Limited.

See the Court Order by clicking here. 

Affected by the new court injunction are specific proposed resolutions  for Lekoil Limited’s Extraordinary General Meeting (EGM)  for  Thursday April 7, 2022.  The resolutions, which Lekoil Limited had planned to pass in the EGM but are now restrained include:

• Approving the Option Agreement entered into with Savannah Investments, in accordance with the requirements of Rule 15 of the AIM Rules.
• Authorising the Directors to allot and issue fully paid ordinary shares up to an aggregate number of 151,755,547, which is approximately 20 per cent (20%) of the Company’s current issued ordinary share capital.

Lekoil Nigeria in an exchange with Prime Business Africa on Wednesday said its ”Board in is delighted that the injunction has been granted, prohibiting a substantially dilutive issuance of equity and an option agreement with Savannah Energy Investments Limited which would have denied shareholders of significant value.”