Ardova scheme shareholders approve transfer of shares at N17.88 per unit

The shareholders of Ardova Plc at a Court Ordered Meeting held in Lagos on Wednesday May 31 approved the Scheme of Arrangement (Scheme), for the holders of its fully paid ordinary shares of 50 kobo each, subject to the approval of the Securities and Exchange Commission (SEC) and the Court.

Each Scheme shareholder of the Company, subject to the sanction of the Court and delivery of the sanction for registration at the Corporate Affairs Commission Effective Date), shall receive N17.88kobo per Scheme share held by such Scheme shareholder.

Upon the effective date of the Scheme, scheme shareholders of the Company will be able to realise their holdings in the Company at 28percent premium to the Company’s share price of N13.90 on November 30, 2022, being the last traded price prior to the offer.

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According to the proposed Scheme presented to shareholders, the transaction provides an avenue for the core shareholder to support the Company in raising the required capital to expand its business operations in order to improve profitability.

Aniola Durosinmi-Etti, chairman for the meeting, stated that, “In recent years, the macro-economic environment in Nigeria had been particularly difficult on the general operations of businesses in the country”.

She added that “over the past five years, the Company has recorded declining margins despite growth in its top-line”. She noted that operating costs had impacted the Company’s ability to pay decent returns as evidenced by its dividend payout history in the last five years.

She expressed that the management is committed to the long-term survival of the oldest and leading indigenous energy group in Nigeria.