Nigeria’s Ignite Investment plans to acquire a controlling stake in Forte Oil

NIGERIA – Ignite Investment & Commodities Limited is planning to acquire a controlling stake in Forte Oil Plc.

A notification on the plan to take-over up to 500,000 ordinary shares which account for a 0.04% equity stake has already been sent to the Nigerian Stock Exchange (NSE).

According to reports by the Financial Vanguard, the move by Ignite Investments to propose a takeover offer was informed by the company’s desire to have acquire controlling stake in Forte Oil.

Reports by the same newspaper indicate that Ignite Investment’s eventual plan is to go for Forte’s delisting from the NSE.

A market operator who preferred to remain anonymous confirmed Financial Vanguard’s report saying: “Ignite Investment is planning to delist Forte Oil from the NSE.

The offer would enable it have controlling interest in Forte Oil as its stake would increase to 74.06.”

Explaining the takeover offer, the Chief Operating Officer, InvestData, Mr. Ambrose Omoriodon said: “Forte Oil offering of 500,000 ordinary shares at N66.25 is in order since it is through tender.”

According to Mr. Victor Chiazor, the proposal by Ignite investments to acquire the 500,000 ordinary shares at the same unit price of N66.25 paid to acquire the majority stake in the company, is in line with a regulatory requirement by the Securities and Exchange Commission.

Forte Oil has however disclosed to its shareholders and other stakeholders that the proposed offer by Ignite Investments is still under review by the relevant regulators and has not been formally launched.

Forte Oil’s acting Company Secretary said, “As such, shareholders are advised to take no action in respect of the proposed offer at this time,” Forte Oil’s acting Company Secretary said in a statement to shareholders.

“Shareholders will be appropriately notified in line with regulatory requirements by Ignite Investments on the formal launch date”

Forte Oil Plc is one of the largest indigenous petroleum marketing companies in Nigeria.

It currently operates about 500 retail outlets scattered across Nigeria’s 36 states.

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