Femi Otedola, Chairman of Forte Oil, has disclosed plans to sell his shares in the downstream sector of the company.
The announcement was contained in a notice conveyed to the Nigerian Stock Exchange by the company on Monday.
The notice, which was signed by Akinleye Olagbenle, General Counsel of Forte Oil, stated that Otedola, who is the company’s largest shareholder, has, in agreement with other investors, decided to divest 75 per cent of his shares in the downstream sector.
It added that Otedola will instead re-direct his attention in refining and petrochemicals, upon the sale of the shares by the first quarter of 2019.
The statement partly read: “Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 per cent direct and indirect shareholding in the company’s downstream business.
“Mr Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals. The transaction is expected to close in the first quarter of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.”
Otedola became the largest shareholder in the company after the incorporated trustees of the Nigerian National Petroleum Corporation (NNPC) pension fund divested its shares in the then African Petroleum (AP) to Zenon Petroleum and Gas Limited, owned by the businessman.
A restructuring of AP then led to the change of name, bearing the current name Forte Oil in December 2010.