Home Energy & Environment Nipco acquires additional stake in 11 Plc

Nipco acquires additional stake in 11 Plc

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Monday Ashibogwu
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A major downstream player in the oil industry, Nipco Plc, has bought another 3.23 per cent stake in 11 Plc, the fuel retailer formerly known as Mobil Oil Nigeria, for N4.84bn to increase its holding to 70 per cent.
Nipco’s investment subsidiary bought 60 per cent of Mobil Oil Nigeria from Exxon Mobil Corporation in October, when the United States oil giant pulled out of downstream fuel distribution in Nigeria. Having amassed a stake of almost 67 per cent, it wanted to increase that holding to around 70 per cent, Reuters reported on Wednesday.
Under Nigerian takeover rules, it had to offer the same price of N417.12 per share to minority investors. The downstream oil industry in Nigeria is consolidating as multinational oil firms sell out to focus on higher margin exploration and production, following a drop in crude oil prices. Nigeria exports nearly two million barrels of oil a day but imports the bulk of its refined products because its refining capacity is unable to meet the country’s daily fuel needs of 40 million litres

 

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