- Nipco Acquisition of Mobil Will Boost Investor Confidence
The Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema, on Monday said the recent acquisition of ExxonMobil’s 60 per cent stake in Mobil Oil Nigeria by Nipco Plc would ensure continuous investors’ interest in the nation’s capital market.
Onyema described the deal as one of the largest acquisitions in the downstream sector of the oil and gas industry during a courtesy visit by the NSE management team to Nipco in Apapa, Lagos, according to a statement by the company.
He was quoted as saying that the strategic acquisition would enhance the company’s continuous growth and expansion in Nigeria as well as add increased value to investors and other stakeholders.
The NSE CEO said, “At the Exchange, we are keen to support businesses to achieve greater success so that they can thrive within the enabling environment as well as provide organisations with various opportunities to fund their long-term objectives.
“Nipco, as a critical stakeholder, needs all the support with the various initiatives and opportunities available via the capital market to enable it to excel in the sector
According to him, the acquisition by Nipco is a great development for the industry and a great achievement for a Nigerian owned investment company.
“We think it is a good development for the company, and it also gives great potential for indigenous companies to get global visibility. We are indeed impressed with Nipco’s track record on safety,” Onyema added.
He, however, urged the management of Nipco to reconsider listing the company on the NSE, adding that it would give more credibility and attract more shareholders to the firm, among other benefits.
The Managing Director, Nipco, Mr. Venkataraman Venkatapathy, lauded the NSE boss and his management team for the visit to the company.
He said, “The transition period will also enable Nipco Plc to effectively manage a smooth and successful completion of the transaction. Nipco considers this acquisition as an important synergy.
“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.”