Nigerian billionaire, Femi Otedola, joins Dangote in the refining
BusinessFemi Otedola agrees to sell the entirety of his 75% shareholdings in Forte Oil to Ignite Investments and Commodities Limited.Femi Otedola is divesting into refining and petrochemicals
The billionaire will be joining Africa’s richest man, Aliko Dangote, in the market.
Dangote is currently building a refinery in Lekki with a capacity to process about 650,000 barrels per day of crude oil.
Nigerian billionaire and oil magnate, Femi Otedola, has agreed to sell the entirety of his 75% shareholdings in Forte Oil to Ignite Investments and Commodities Limited and divest into refining and petrochemicals.
Akinleye Olagbende, Forte Oil’s General Counsel, made the disclosure in a corporate filing on the Nigerian Stock Exchange on Monday, December 24, 2018.
Olagbende said Otedola will be selling his all his stakes – direct or indirect – to explore and maximise business opportunities in refining and petrochemicals.
The statement reads, “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, CON has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75% direct and indirect shareholding in the Company’s downstream business.”
Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP served financial and legal advisors respectively to Femi Otedola while Sefton Fross served as legal advisor to Ignite Investments and Commodities Limited.
PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as Joint Financial Advisors in the deal.
The deal is expected to close in the first quarter (Q l) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.
Otedola joins Dangote in refinery and petrochemicals business
With this move, the billionaire businessman will be playing in the refinery business with his billionaire friend and Africa’s richest man, Aliko Dangote, who is building the continent’s largest refinery in Lagos.
When completed, Dangote refinery will turn Nigeria into a petroleum exporter, Africa’s largest oil producer that imports most of its fuel due to lack of functional refining capacity.
Otedola who has visited the site of the on-going refinery is about to play in the market.
It is not yet certain how he is planning to enter the market.