• Thursday, February 29, 2024
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Forte Oil, Aiteo Group, others scramble to acquire Oando’s downstream assets


Forte Oil Plc, one of the nation’s petroleum products marketing company and Chief Benny Peters’ Aiteo Group, on Monday emerged the major contenders for Oando Plc downstream assets nationwide.

The News Agency of Nigeria (NAN) reports that investors’ interest heightened after Oando Plc announced plans to concentrate mainly on upstream petroleum activities and divest from downstream, petroleum products marketing.

Alex’ Irune, head, corporate communications of Oando, in a statement issued on Monday and made available to the News Agency of Nigeria (NAN), confirmed investors’ appetite concerning their divestment from downstream petroleum operations.

According to the statement, Oando Group remains focused on its commitment to continue value creation for its shareholders through its strategic plan to increase its investment in the higher margin upstream and to spur long-term growth for the company.

Irune said that the company’s partial divestment from their downstream business a few years ago was part of the strategy of Oando in exploring the best option for growth and returns on investment.

He also said that the partial divestment had received shareholders’ approval.

In another development, the management of Forte Oil informed the Nigerian Stock Exchange (NSE) about its initial negotiations for the possible acquisition of assets of an unnamed downstream company.

In a notice to the NSE, Forte Oil said “discussions on the proposed acquisition is still in its infancy, but this announcement on this possible transaction is in the interest of full disclosure and ensuring that it adheres to the highest corporate governance practices and procedures”.

The moves by Forte Oil, according to NAN, was part of the efforts to diversify its revenue and profit base, after the company successfully acquired the Geregu Power Generation Plant, Kogi State, in 2013.

The Aiteo Group, as one of the nation’s emerging integrated energy concerns, was founded by the Peters brothers, Benedict and Francis.

Aiteo focuses on exploration and production, bulk petroleum storage, refining of petroleum products, trading, marketing and supply, as well as power generation and distribution.