C & I Leasing Plc, a leasing, and business service conglomerate, has concluded the buyout of 27.5 percent minority stake in C & I Petrotech Marine Limited (CPML), a joint venture with six vessels presently deployed to long-term contract with a leading oil firm.
In a filing to the Nigerian Stock Exchange (NSE) yesterday, the company said the parties engaged an independent adviser to value the shares of the CMPL before the consummating the buyout.
“As a result of the transaction CMPL is now a fully owned subsidiary of C & I Leasing Plc,” the company said in the filing signed by the Company Secretary, Mbanugo Udenze.
The company had explained that the N7 billion bond recently raised by would be largely invested in business expansion and restructuring of its debts over a period of five years among other initiatives which will guarantee increased profit margins and returns for shareholders.
Commenting on the development, the Managing Director of C & I Leasing Plc, Mr. Andrew Otike-Odibi said the firm’s its journey into marine sector as a service provider for the oil and gas sector actually started through CPML joint venture in 2010 and has over the years culminated in the ownership of over 20 vessels consisting of crew boats, pilot boats, patrol boats, and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.
“This is clearly reiterate our commitment to growing our marine services business and gaining leadership in the field. It is hoped that this buyout will further the company’s drive to restructuring and repositioning our marine business for enhanced profitability,” he added.