Ignite Investments and Commodities Limited proposes 100% buyout of Ardova Plc

By Christy Animam

Downstream oil and gas company, Ardova Plc has disclosed that Ignite Investments & Commodities Limited and its majority shareholder, has expressed intention to acquire rest of the shares held by other shareholders of the energy company.

In a filing signed Tuesday by Ardova’s company secretary, Oladeinde Nelso-Cole and made available through the Nigerian Exchange Limited (NGX), Ignite is has proposed an offer price of ₦17.38 per share, after which the Ardova will delist from the NGX.

Ignite Investments & Commodities Limited currently owns 74% of Ardova Plc and is the majority shareholder of the company.

According to the corporate filing, the offer price of ₦17.38 represents a premium of 22.44% and 24.38% to the 30-day and 60-day volume weighted average share price of ₦14.19 and ₦13.97 respectively, on 30 November 2022, being the last trading day prior to the offer.

The company further said, “It is intended that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.

“The Proposed Transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the Company.

“The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a CourtOrdered Meeting.

“If the conditions of the Proposed Transaction are satisfied and same is sanctioned by the Federal High Court, the Company would be delisted from NGX.”

It said further developments will be communicated to shareholders in due course while it advised Ardova shareholders and members of the public to exercise caution in dealing in Ardova’s shares until further information is provided.