An
indigenous downstream oil and gas firm, Nigerian
Independent Petroleum Company (NIPCO) Plc, has acquired 60 per cent stake
in Mobil Oil Nigeria Plc (MON). The Managing Director of NIPCO, Venkataraman Venkatapathy, said in a
statement that the acquisition was agreed with the execution of a sales and
purchase agreement with ExxonMobil, a leading downstream player.
According to
him, with the signing, “we will start
the transition period and initiate the process of obtaining
regulatory approvals from the requisite federal agencies – Security and
Exchange Commission (SEC) and Nigerian Stock Exchange (NSE).”
Venkatapathy said the transition period would also enable NIPCO to effectively manage a smooth and successful completion of the transaction. He noted that NIPCO considers the acquisition an important synergy. “It is part of our strategic move to support NIPCO’s continuous growth and expansion of its Nigerian retail footprint.
He said, “We are confident of adding tremendous value to MON and
likewise MON will add a huge value to NIPCO. In furtherance of this value
addition, NIPCO will continue to maintain the Mobil brand on its retail outlets
as well as continue to blend and sell the Mobil brand of lubricants under
Branding Licence (s) from ExxonMobil.”
He expressed
gratitude to ExxonMobil for selecting NIPCO as the preferred bidder for the
acquisition of MON. “We wish to give every assurance to
ExxonMobil that having entrusted us with this invaluable asset, we will ensure
full brand compliance with ExxonMobil’s global standards as well as rigorously
sustain and follow ExxonMobil’s code of conduct/ethos and operational
excellence,” he added.
Venkatapathy
noted that NIPCO’s expansion trend reinforces its confidence in Nigeria’s
future. According to him, the Nigerian economy still provides premium return on
investment, adding that his company was privileged to have been given the
opportunity by ExxonMobil on its home ground.
Commenting
on the transaction, Manager, Media and Communications, Oge Udeagha, said subject to regulatory approval, change-in-control
is anticipated by mid-2017. He assured that Mobil Oil Nigeria’s employees would
continue to be employed following the change-in-control.
According to
Udeagha, Mobil Oil Nigeria has 250 company-owned and dealer-owned Mobil-branded
retail stations, a fuel terminal and a lubricants plant in Apapa, and interests
in two aviation fuel joint ventures in Lagos. (Guardian)
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