Home » Nigerian energy mogul Abdulwasiu Sowami’s Ardova to delist from NGX

Nigerian energy mogul Abdulwasiu Sowami’s Ardova to delist from NGX

by Feyisayo Ajayi
Abdulwasiu Sowami

Nigerian energy mogul Abdulwasiu Sowami has made an offer to acquire shares held by other shareholders in Arodva Plc as part of his plans to take over the Nigerian oil and gas marketing firm through Ignite Investments & Commodities Limited.

In accordance with the plan, Ardova has notified the Nigerian Exchange (NGX) that Ignite Investments & Commodities Limited, Sowami’s investment vehicle, has approached the company’s Board of Directors with the intention of acquiring the shares held by other shareholders and delisting the company from the local bourse, NGX.

The proposed transaction price of N17.38 ($0.0376) per share, which values the company at N22.6 billion ($48.93 million), represents a 22.44-percent and a 24.38-percent premium to the 30-day and 60-day volume weighted average share prices of N14.19 ($0.0307) and N13.97 ($0.0303), respectively, on Nov. 30, 2022 — the last trading day prior to the offer.

The deal is subject to the Securities and Exchange Commission’s review and approval, as well as the approval of the company’s shareholders, and will be implemented under a scheme of arrangement in accordance with Section 715 of the Companies and Allied Matters Act, No. 3 of 2020 (as amended), and other applicable rules and regulations.

Sowami, the chairman of Ardova Plc, presently owns 74.1 percent of the oil marketing firm’s issued shares and is looking to acquire the remaining 25.9 percent, or 970.7 million units, held by the investing public.

The latest development comes less than a week after the Sowami-led oil and gas marketing firm reported a N7.61-billion ($16.5 million) loss at the end of its fiscal year 2022, the worst performance in 10 years.

Despite increasing revenue by 19.5 percent year-on-year, Ardova reported a N7.61 billion ($16.5 million) loss in its unaudited results for the fiscal year ended Dec. 31, 2022, compared to a N3.85-billion ($8.3 million) loss in its audited financial statements for the fiscal year ending Dec. 31, 2021.

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