Otedola strategises to buy Forte Oil upstream and power firms

The majority shareholder of Forte Oil Plc, Mr Femi Otedola, is planning to buy out the company’s upstream services and power distribution firm to be ratified by the shareholders on February 7.

Mr Akinleye Olagbende, the firm’s Company Secretary, disclosed this in a letter to the Nigerian Stock Exchange on Wednesday.

Olagbende said the move followed shareholders’ approval, on May 23, 2018, of the divestment of Forte Oil from its Ghana unit AP Oil and Gas and Amperion Power Distribution Company, which holds the group’s interest in Geregu Power Plc.

He said the company’s efforts to dispose of the assets were hit by low interest in the bidding process as well as low price expectations.

It is not clear if the move by the billionaire was part of his original plan to divest from the downstream business of the company to enable him to take over the lucrative upstream and power assets of the firm.

Source: Energy Mix Report