Nigerian billionaire to buy upstream business of the oil company he chairs

Nigerian billionaire Femi Otedola is set to buy the upstream business of Forte Oil Plc. and its power generating business Amperion Power Distribution Company Limited. The company made this known on Wednesday (January 16) in a notice to shareholders published by the Nigerian Stock Exchange (NSE).

According to the company, shareholders had last year authorised a restructuring that will see Forte Oil sell its upstream and power businesses, as well as its downstream business in Ghana AP Oil&Gas Ghana Limited.

“A public tender sale process was commenced to attract interested potential investors to participate in the divestment opportunity,” the notice reads, adding, however, that a review of the process showed low interest from investors, especially for Amperion Power which was priced lower than the company expected.

Otedola, who is also the company’s chairman has therefore indicated interest in the divestment opportunity through a designated vehicle.

Shareholders will at an Extraordinary General Meeting (EGM) on February 7 vote on whether to allow the chairman participate in the divestment opportunity.

Otedola had last year sold his 75 percent stake in Forte Oil’s downstream business. When the company announced the sale, Forte Oil explained the chairman’s decision was to enable him pursue business opportunities in refining and petrochemicals.

Originally published at The Nerve Africa.