Merger and Acquisition

Atiku Calls Out FG Over Preferential Treatment in Oando’s Agip Acquisition

Published

3 weeks ago

August 26, 2024

Former Vice President Atiku Abubakar has raised concerns over what he described as preferential treatment granted to Oando Plc in its acquisition of the onshore assets of Nigerian Agip Oil Company (NAOC), a subsidiary of the Italian oil giant ENI.

In a statement released on Sunday, Atiku questioned the Federal Government’s accelerated approval of the deal, which he claims was pushed through unusually quickly, while similar transactions involving major players like Shell and Mobil have faced years of delays.

Atiku’s concerns stem from the fast-tracked approval granted to Oando, a firm with familial ties to President Bola Tinubu, for its acquisition of 100% equity in NAOC.

According to the former Vice President, other significant deals, such as the Shell/Renaissance and Mobil/Seplat transactions, have stagnated for prolonged periods despite being in the pipeline for years.

“Within just eight months, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the divestment of ENI/AGIP’s onshore assets to Oando. Meanwhile, SEPLAT’s attempts to purchase Mobil’s onshore assets have been stuck for three years. It raises serious questions about why Oando is receiving such preferential treatment,” Atiku stated.

Atiku, the Presidential candidate of the People’s Democratic Party (PDP) in the 2023 general election, further accused the Tinubu administration of bias in managing oil sector deals.

He alleged that the swift approval for Oando, a company connected to the President’s nephew, reeks of favoritism, undermining the integrity of Nigeria’s oil and gas industry.

The former Vice President also highlighted the government’s handling of fuel subsidy payments, specifically questioning the Nigeria National Petroleum Company Limited’s (NNPCL) recent financial claims.

Atiku called for transparency concerning NNPCL’s outstanding N7.8 trillion in subsidy claims, despite President Tinubu’s administration having removed fuel subsidies earlier this year.

Atiku cited the International Monetary Fund (IMF), which projected that Nigeria’s subsidy payments would amount to approximately $7.5 billion, or 3% of GDP, by the end of 2024.

He expressed disbelief over the persistence of fuel shortages and the unpaid subsidy claims, even though the subsidy program was officially halted.

He warned that the Tinubu government’s actions might be an attempt to fund future elections through the perpetuation of questionable subsidy practices.

“The subsidy regime has become an even wider conduit pipe through which monies for the 2027 election will come from,” Atiku said, further accusing the government of perpetuating a “sham subsidy regime” that lacks transparency.

Also, Atiku called for a thorough investigation into NNPCL’s dealings, criticizing the House of Representatives for its inaction in holding the national oil company accountable.

He alleged that the country’s oil assets were being “mortgaged to vested interests” with little oversight, while key officials in the oil and gas regulatory bodies continued to retain their positions despite these questionable practices.

Atiku’s comments have reignited the debate over the transparency of oil sector transactions and the lingering issue of fuel subsidies in Nigeria.

His criticisms come at a time when the Tinubu administration faces growing scrutiny over its economic policies, particularly in the energy sector.

The former Vice President urged the government to provide clarity on the ongoing subsidy claims and called for fairness in the approval processes for oil acquisitions to ensure a level playing field for all investors.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Merger and Acquisition

FBN Holdings Clarifies Merchant Banking Divestment, Retains Other Subsidiaries

Published

5 days ago

September 11, 2024

Samed Olukoya

FBN Holdings has sought to clarify the recent divestment from its Merchant Banking business.

According to the lender, all its businesses and entities apart from the Merchant Banking business are not included in the divestment deal.

It said, “We wish to clarify that all other entities and businesses listed below are not included in the divestment, and they remain subsidiaries of FBNH and are well integrated into the Group’s strategic focus.”

The subsidiaries are FBNQuest Capital Limited, FBNQuest Asset Management Limited, FBNQuest Trustees Limited, FBNQuest Funds Limited, and FBNQuest Securities Limited.

“We reiterate that the divestment pertains solely to FBNQuest Merchant Bank Limited, with no impact on the continued operations or strategic positioning of our other subsidiaries within the Group,” the bank stated in a release signed by Adewale L.O. Arogundade, Acting Company Secretary.

Merger and Acquisition

Aradel Energy Seals $16M Acquisition of Olo and Olo West Marginal Fields

Published

2 weeks ago

August 30, 2024

Samed Olukoya

Aradel Holdings Plc, an indigenous energy company, has announced the successful acquisition of a 100 percent interest in the Olo and Olo West marginal fields, located in the Eastern Niger Delta, through its subsidiary, Aradel Energy Limited.

The deal, which was completed in collaboration with TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited (NNPC), is valued at $16 million, with an additional $3.5 million in deferred and conditional payments.

The Olo and Olo West Fields were formerly part of Oil Mining Lease (OML) 58, and the acquisition marks a significant milestone in Aradel’s strategic plan for growth in Nigeria’s oil and gas sector.

The deal is a major step towards enhancing energy security and bolstering Aradel’s commitment to providing sustainable energy solutions that drive economic development.

In a statement on Thursday, Aradel confirmed that the necessary regulatory processes are underway for the issuance of the Petroleum Mining Lease (for Olo) and the Petroleum Prospecting License (for Olo West).

This will follow the payment of relevant ministerial consent fees and the completion of the field development plans within designated timelines.

Aradel’s Chief Executive Officer and Managing Director, Adegbite Falade, expressed enthusiasm over the acquisition, emphasizing its importance in advancing the company’s vision of promoting energy security in Nigeria.

“The addition of Olo and Olo West marginal fields to Aradel’s portfolio is a significant inorganic growth milestone in furtherance of our long-term strategy to provide sustainable energy solutions that support economic growth,” Falade said.

Falade also praised the collaboration between the Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their support throughout the acquisition process.

He acknowledged the role of NNPC and TotalEnergies in facilitating the deal, highlighting their commitment to boosting Nigeria’s oil and gas production from marginal fields.

Marginal fields are oil or gas fields that have been discovered but left unattended for a decade or more.

Their development is seen as a crucial opportunity for indigenous companies like Aradel to step in and maximize Nigeria’s untapped energy resources.

Olo and Olo West, located 80 kilometers northwest of Port Harcourt, hold considerable potential for increasing Nigeria’s oil output.

Falade noted that the acquisition aligns with Aradel’s ambition to pursue both organic and inorganic growth in the energy sector.

He reiterated that Aradel is dedicated to expanding its footprint in Nigeria’s energy industry, and this transaction reflects the company’s ongoing efforts to achieve that goal.

The acquisition is particularly significant in light of Nigeria’s ongoing push for self-sufficiency in energy production.

The government has encouraged private sector investments in marginal fields as part of its broader efforts to increase the country’s oil and gas output, reduce reliance on imports, and create job opportunities for Nigerians.

Aradel’s acquisition of the Olo and Olo West fields underscores the company’s resolve to be a key player in the country’s energy future.

As the fields move towards development and production, Aradel will be playing a critical role in advancing Nigeria’s energy sector and contributing to the nation’s overall economic stability.

The energy firm has built a reputation for its innovative and responsible approach to energy production, and the Olo and Olo West acquisition is expected to further cement Aradel’s standing in the industry.

Merger and Acquisition

Thomas Etuh and Theophilus Danjuma Acquire Notore Chemicals, Pledge Industry Transformation

Published

3 weeks ago

August 29, 2024

Samed Olukoya

Thomas Etuh, founder of Tak Agro, and Theophilus Danjuma’s TY Holdings have successfully acquired Notore Chemical Industries Plc for $150 million.

The acquisition, which includes 60 percent ownership and management control, is expected to revitalise Notore’s operations and boost Nigeria’s agricultural sector.

The deal, structured as a special placement by Kwararafa Africa Limited, follows a competitive bid process that concluded with Etuh and Danjuma taking the reins of Notore Chemicals, which is based in Onne, Rivers State.

Notore, known for producing urea, NPK, and ammonia, has been struggling financially, reporting a group loss after tax of N34.6 billion in the first quarter of 2024.

In an exclusive interview, Etuh expressed his optimism for Notore’s future under new management. “I am excited about Notore, which is a major source of raw material,” Etuh said. “Notore’s products are exportable, and the company has its own power plant and jetty. The potential we see is huge.”

Etuh highlighted that the acquisition would bring much-needed capital to overhaul Notore’s complicated process plant, with plans to commence production next year.

Currently, efforts are underway to secure gas to power turbines capable of generating 30 to 40 megawatts, some of which will be sold to local electricity distributors.

Once the plant is fully operational, the new management intends to expand production capacity over the next three to four years, including the construction of a second production train that could double output to two million tonnes of fertiliser annually.

Since the acquisition, significant management changes have been made. Seven non-executive directors and the group’s deputy managing director have resigned, making way for Etuh’s appointment as chairman and the inclusion of six new non-executive directors on the board.

Danjuma Etuh has been appointed as deputy managing director.

With this acquisition, the Etuh-Danjuma partnership aims to turn around the fortunes of Notore Chemicals and transform it into a leading force in Nigeria’s fertiliser sector.

As production ramps up, the investment is expected to not only generate profits for shareholders but also contribute to the country’s agricultural self-sufficiency by increasing the availability of fertiliser for local farmers and supporting the export market.

The acquisition of Notore Chemicals comes at a crucial time for Nigeria’s economy, where the agriculture sector plays a key role in diversification efforts.

The revitalisation of Notore is seen as a step toward ensuring a steady supply of fertiliser, which is essential for increasing crop yields and supporting food security initiatives.