• Friday, March 29, 2024
businessday logo

BusinessDay

Akinfemiwa resigns as Otedola completes sale of stake in Forte Oil

Femi Otedola

Following the change of ownership at Forte Oil Plc, Akin Akinfemwa and Julius Omodayo-Owotuga have resigned from their positions as the chief executive officer and chief financial officer respectively. Their resignations followed the completion of the sale of the company by its majority shareholder, Femi Otedola.

Accordingly, the management of Forte Oil has approved the appointment of Olumide Adeosun and Moshood Olajide as the new chief executive officer and chief financial officer respectively. Their appointments took effect immediately, according to the notice released by the company’s general counsel, Akinleye Olagbende.

Akinfemiwa was appointed in 2012 as the CEO of Forte Oil Plc and steered the affairs of the company for eight and half years. At the close of business on Friday 21, 2019, Forte Oil’s share price closed at N31.20 as investors traded 720,255 units worth N20.988 million. Year to date, the stock has gained 8.7 percent.

Akinfemiwa, while as Forte Oil’s CEO, executed the company’s transformation program leading to 342 percent increase in profits; acquisition of 414 MW Thermal IPP; resumption of dividend payments as well as capital reorganisation, all between 2012 and 2015. He also started the next phase of growth in 2016 called ‘New Frontier” during which Forte Oil is expected to consolidate growth, build resilience and entrench best practices.

Meanwhile, Femi Otedola, the majority shareholder in Forte Oil, has completed the sale of his stake to Ignite Investments and Commodities Limited led by Prudent Energy Services Limited, according to a statement released by the Nigerian Stock Exchange (NSE). The deal was said to be worth more than N60 billion.

“This completion is consequent upon Ignite receiving all the necessary approvals from the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange and fulfilling all relevant terms and conditions attaché to the Share Purchase Agreement. As a result of this and further to the announcement on December 28, 2018, Ignite will take over controlling stake in Forte Oil Plc the downstream company”, Akinleye Olagbende, general counsel and company secretary, said in a note to stakeholders.

“This concludes a very painstaking process and we believe that this transaction would optimise the existing capabilities inherent in the business and its people who are the key drivers of the business, and propel the company towards an assured future”, Akinfemiwa said.

“This investment is of strategic importance to support our quest of continuously adding value to the Nigerian oil and gas industry. The next phase of Forte Oil’s growth will focus on increasing volumes, diversifying business operations, widening distribution networks and extracting potential synergies with partners. We look forward to working as part of the Forte Oil family to achieve this growth”, Abdulwasiu Sowami, chairman and chief executive of Prudent Energy Services Limited, said.

According to the notice, the parties to the sale indicated that the Forte brand will remain in place and that the transition of the board of directors has begun and new directors have been appointed subject to ratification by the shareholders at the next general meeting of the company. Standard Chartered Bank, Corporate Finance & Advisory and Olaniwun Ajayi LP served as the financial and legal advisors respectively to Femi Otedola while PwC and Stanbic IBTC capital Limited served as joint financial advisors and Sefton Fross served as legal advisor to ignite Investments and Commodities Limited.

 

TELIAT SULE