Otedola sells off stake in downstream Forte oil

Femi Otedola, chairman of Forte Oil Plc, disclosed Monday that arrangements to sell off an entire equity stake of 75 percent owned in the company’s downstream business has been finalised.

Forte Oil while intimating the Nigerian Stock Exchange (NSE), the Securities and Exchange Commission (SEC) as well as the investing community of the development said the decision was taken by its chairman and majority shareholder to aid his exploration and maximisation of business opportunities in the refining and petrochemicals.

Prudent Energy team has agreed to buy off the entire 75 percent stake through ignite investment and commodities Limited, the company’s statement signed by Akinleye Olagbende, general counsel to Forte Oil, revealed.

The transaction, subject to regulatory approvals and satisfaction of various conditions is expected to be finalised in the first quarter of 2019.

The stock performance following news of the equity divestment closed positive with an appreciation of 9.84 percent.

Investors exchanged 2.2 million units of the stock with a share price that closed for the day at N31.25 per share.