ExxonMobil sells off downstream operations to Nipco Plc
United States-based international oil company, ExxonMobil, has sold its 60 percent stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous Nigerian downstream oil and gas company.
The management of Mobil Oil Nigeria Plc, in a message to the Nigerian Stock Exchange (NSE) on Wednesday said the Nigerian arm “has been informed by its majority shareholder, ExxonMobil Oil Corporation, that it has agreed, subject to regulatory approvals, to sell its shares representing 60 percent of Mobil Oil Nigeria’s shares to Nipco Investments Limited, a wholly-owned subsidiary of Nipco Plc”.
In a statement by Managing Director, Nipco, Venkataraman Venkatapathy, it was declared that the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil.
At current price and market capitalization, the 60 percent equity is valued at N40.6 billion. However, the deal has not affect the price of the equity which still closed at N186 per share same as opening price.
With this purchase, Nipco Plc will directly and indirectly own 65.5 percent of the issued share capital of the leading downstream marketer.
Meanwhile, management of Mobil has insisted that the sale was done for strategic, not economic reasons. Communications Manger of Mobil, Ogechukwu Udeagha, said: “This decision is in no way a reflection of our view on the local business climate, financial results or the workforce.”
Despite the equity acquisition, Nipco would maintain the Mobil brand name in its retail outlets as well as sell the Mobil brand of lubricants under branding licence(s) from ExxonMobil.
ExxonMobil has three affiliates operating in Nigeria: Mobil Producing Nigeria Unlimited (MPN) – Upstream; Esso Exploration and Production Nigeria Ltd (EEPNL) – Upstream and Mobil Oil Nigeria (MON) – Downstream. The company’s affiliates are involved in the exploration and production of crude oil and natural gas; the manufacture of petroleum products and the transportation and sale of crude oil, natural gas, and petroleum products.
ExxonMobil is also a major manufacturer and marketer of commodity and specialty petrochemicals and also has interest in electric power generation facilities. In addition, we conduct extensive research programs in support of these businesses.
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