Ardova seeks shareholders’ nod for N60b new capital raising
The Board of Directors of Ardova Plc has decided to seek the approval of shareholders of the downstream oil and gas company for a new capital raise under which the company plans to raise up to N60 billion in debt capital.
In a regulatory filing at the Nigerian Exchange (NGX) Limited, the board of Ardova indicated that the company plans to establish a N60 billion bond issuance programme, under which series of bonds will be issued.
Directors of the company stated that they had through a resolution dated February 25, 2021 resolved to recommend the N60 billion bond issuance for the approval of the shareholders of the company, subject to obtaining requisite regulatory approvals and relevant contractual approvals.
The board however noted that the final decision to proceed with the N60 billion bond issuance will be subject to market conditions and the specific details of the bonds which will be disclosed in the appropriate transaction documents at the relevant time.
Ignite Investments and Commodities Limited led by Prudent Energy Services Limited had in June 2019 completed the acquisition of 74.02 per cent majority equity stake in Forte Oil from the company’s erstwhile chairman, Mr. Femi Otedola. The transaction was valued at about N64 billion. The company subsequently changed its name to Ardova.
Ardova recently reached agreement with Shell as the main distributor for Shell lubricants. The partnership is expected to improve synergies between the two companies. Shell currently has a leading presence in Nigeria’s upstream sector with oil and gas exploration, production and distribution network in the southern parts of the country and deep offshore. Ardova is one of Nigeria’s foremost indigenous integrated energy companies with an extensive network of over 450 retail outlets from which it distributes petrol, diesel, aviation fuel and liquefied petroleum gas (LPG). Ardova also produces its own range of lubricants and has warehouse facilities across Nigeria.
The Shell deal followed an earlier Memorandum of Understanding signed between Prudent Energy, Ardova Plc and Shell Trading International Limited laying out an exploratory framework for harnessing the local and international capabilities of the respective parties including possibilities on how to progress opportunities intended to develop cleaner energy solutions.