NIPCO acquires ExxonMobil’s 60% stake in Mobil for $301m

Mobil Oil Nigeria Plc (MON) has said it has received notice from ExxonMobil Oil Corporation (EMOC) on a formal application by NIPCO Investments limited, to purchase 216.4 million ordinary shares of Mobil Oil Nigeria for $301 million.

A regulatory filing obtained from the Nigerian Stock Exchange noted that this development was in furtherance to the divestment of ExxonMobil Oil Corporation (EMOC) from Mobil Oil Nigeria Plc (MON).

MON  in statement stated: “Further to our communication of October 19, 2016, where we disclosed that ExxonMobil Oil Corporation (EMOC)  our majority shareholder, had executed a sale and purchase agreement with Nipco investments limited for the acquisition of EMOC’s entire 60 per cent equity ownership in Mobil Oil Nigeria Plc, we have received notice from EMOC that a formal application has been filed by Nipco Investments limited with the securities and Exchange Commission for an “Authority to Proceed” with the Acquisition”.

The statement, however, added that the acquisition of EMOC’s N216,357,157 ordinary shares in Mobil Oil Nigeria Plc for $301million is subject to price adjustments for dividends and other factors.

ExxonMobil Oil Corporation, United States’ oil and gas giant, had earlier executed a sale and purchase agreement (SPA) with Nipco Plc to sell its majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) Plc to Nipco Plc, an indigenous oil and gas company.

MON is one of the six major petroleum products marketers in the country. It currently has over 200 retail outlets located in all 36 states of Nigeria.

MON plc owns three plants located in Apapa, Lagos State, that manufacture lubes, petroleum jelly, and insecticide. Its ultra-modern lube oil plant, with a capacity of 450,000 barrels per annum is regarded as one of the most sophisticated in Africa.

NIPCO on the other hand was formerly called IPMAN Petroleum Marketing Company Limited (IPMCL) was incorporated by members of the Independent Marketers Association of Nigeria (IPMAN) on January 8th, 2001 as a Private Limited Liability Company to participate in the distribution of white petroleum products business across the country.