Why I'm selling Forte Oil shares, exiting fuel business - Otedola reveals
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Why I'm selling Forte Oil shares, exiting fuel business - Otedola reveals

- The chairman of Forte Oil, Femi Otedola on Monday, December 24, revealed his decision to sell the company

- In a recent statement, it was disclosed that this happened over three years when the company sold 17% of its equity to a Swiss oil trading firm

- Otedola said that he made the decision in to explore and maximise business opportunities in refining and petrochemicals

Femi Otedola, the chief executive officer of Forte Oil Plc, on Monday, December 24, revealed his resolve to sell all his shares in the firm’s downstream business.

The development is coming over three years following the company's sale of 17 per cent of its equity to a Swiss oil trading firm, Punch reports.

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Forte Oil disclosed the divestment by its top shareholder in a notice signed by Akinleye Olagbende, its general counsel.

The notice partly read: “Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 per cent direct and indirect shareholding in the company’s downstream business.

“Mr Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals. The transaction is expected to close in the first quarter of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.”

The firm said that Standard Chartered Bank, Corporate Finance & Advisory, Dubai, and Olaniwun Ajayi LP served as financial and legal advisers respectively to Otedola, while PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as joint financial advisors and Sefton Fross served as legal advisor to Ignite Investments and Commodities Limited.

However, Forte Oil, stated that the notification was not intended to constitute an offer to sell or a solicitation of an offer to buy any of the ordinary shares or any other securities.

“There will be no sale of the ordinary shares or any other securities in any state or jurisdiction in which such an offer solicitation or sale is not permitted,” it remarked.

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The firm recently disclosed that Mercuria Energy had made progress into the West African energy sector through direct investment in Forte Oil.

It further said that Mercuria is joining forces with Forte Oil just when equitable funding and expertise is needed to expand and intensify its market explosion to give the firm the advantage to create more impact for all shareholders.

Meanwhile, Legit.ng reported that Otedola had tipped the late Chief Wahab Iyanda Folawiyo as the richest Nigerian that ever lived.

Otedola said this in an Instagram post on Thursday, December 20. In a caption of a photo he took with Tunde Folawiyo (the son of the deceased), the Forte Oil boss said it was the late Folawiyo that taught him entrepreneurship.

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Source: Legit Nigeria

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