NIGERIA – Ardova Petroleum Plc (AP), an integrated energy company, has announced plans to acquire oil and gas retail outlet Enyo Retail and Supply Limited.
According to a press release, Enyo accepted Ardova’s acquisition offer in a deal that is still subject to completion of a due diligence exercise and the receipt of all required regulatory approvals.
This will be the second major acquisition by Ardova Plc after its majority shareholders Prudent Energy Services, using a vehicle Ignite Investments and Commodities Limited, acquired majority shares in Forte Oil Plc from billionaire Femi Otedola in 2019.
The CEO of Ardova Mr. Olumide Adeosun informed the Exchange that immediately following completion, AP will look to retain the Enyo branded stations which will operate side by side with the AP brand “whilst leveraging the strengths of AP and its group companies” in a move that is typical with such acquisitions.
Enyo was established in 2017 as a downstream energy player and is majorly owned by Folawiyo Energy, a notable player in the oil and gas industry. The Chairman of ENYO is Mr. Tunde Folawiyo. Ardova indirect majority shareholder Prudent Energy Services is owned by a Nigerian businessman and oil mogul Abdulwasiu Sowami.
Enyo is one of the newest and fastest growing retail and supply companies in the downstream sector.
Enyo is a technologically driven player and currently operates over 90 stations across Nigeria attending to over 100,000 retail customers daily across 15 states of the country.
Ardova share price rallied during the day as news of the deal reached some investors. The share price of Ardova has rocketed this year gaining 47.6% year to date.
Nairametrics reported in September 2019 that Ardova had obtained its board approval to acquire downstream assets in the country in line with its expansion plans.
Both companies hinted that further updates on the progress regarding the transactions or proposed acquisition shall be provided in due course.
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