Nigerian fuel marketer, Nipco Plc, has confirmed that it has launched a N4.84 billion ($16 million) share offer to enable it raise its stake in Mobil Oil Nigeria to 70 percent.
Nipco currently holds 66.87 percent of Mobil Oil Nigeria after it acquired 60 percent from Exxon Mobil Corp in 2016.
Exxon Mobil, a U.S based oil multinational, sold its shares to Nipco in a bid to exit the heavily regulated downstream sector in Nigeria.
Advisers to Nipco confirmed to Reuters yesterday that it was raising its stake Mobil Oil in accordance with Nigerian takeover rules.
Nipco is offering minority shareholders N417.12 ($1.4) per share for the 3.23 percent it requires to raise its ownership to 70 percent.
The offer matches what was paid to Exxon in 2016 but is 75 percent more than the current market share price of N238.36 (price quoted as on Wednesday).
According to reports published by Reuters, Mobil Oil shares have lost 10 percent in value this year as the global oil prices remain shaky.
The current share price puts the oil company market value at N85.95 billion ($282 million).