Corporate Restructuring: Forte Oil Puts Equity Raise On Hold

By Nse Anthony-Uko

(Sundiata Finance) – Forte Oil Plc has announced the postponement of its proposed N20 billion offer to be raised through book building from the equity market to support operation and drive diversification strategy.

In a notice signed by the Company secretary, Akin Olagbende, sent to the Nigerian Stock Exchange (NSE) to the investing public, Forte Oil said that it was putting the offering on hold, pending the conclusion of an ongoing corporate restructuring with respect to maximising the emerging opportunities in the Nigerian energy sector, which would be to the ultimate benefit of all our shareholders.

The company assured the NSE that it would keep stakeholders updated on the decisions of the group in due course. Forte Oil Plc had in August, 2017 announced plans to offer for subscription up to N20 billion through book building.

It further stated that the Securities and Exchange Commission (SEC) had given its approval to the proposed offering by way of book building. The capital raising would be done as a public offer for shares through a book-building process to help price discovery.

Recently at a press briefing, the executive director, Finance and Risk Management of Forte Oil, Mr. Julius Omodayo-Owotuga, said that the proceeds realised from the fund raising exercise would be used for business expansion, enhancement of working capital and downstream businesses, among others.

Omodayo-Owotuga said that the company had the mandate of the shareholders to raise N100 billion fresh capitals. He stated that the company had already raised nine billion naira through debt capital in 2016, noting that, the capital raising would be in tranches as the need arises.

Omodayo-Owotuga added that the company had also identified five growth pillars aimed at driving revenues and enhanced value creation to all its stakeholders. According to him, the company will focus on high margin businesses such as lubricants, Liquefied Petroleum Gas (LPG) and power to drive revenue generation.

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