Stories, Akinola Ajibade
Rainoil Limited has acquired substantial shares in Eternal Plc. with a view to strengthening its capacity in the nation’s downstream sector. Both companies are players in the downstream sub-sector of Nigeria’s oil and gas industry.
Rainoil acquired 794,969,774 shares in Eternal Oil Plc, through its investment arm- Preline Limited. Prior to this period, the firm had signed a Sale Purchase Agreement (SPA) among other requirements to enable the deal sail through. In a statement by the management of Rainoil Limited and made available to the New Telegraph, the acquisition of the shares of Eternal Oil is devoid of hitches as the two companies reached a mutual understanding on the issue before it was ratified by the shareholders and the Nigerian Stock Exchange (NSE).
Speaking on the issue, the Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, said the acquisition process was completed on time in order to quickly bring more growths to the company.
He said the acquisition had enabled the firm to achieve its role of creating more growth opportunities within the sector. Ogbechie said: “The acquisition is in line with our strategy to expand across oil and gas value chains, in Nigeria.
“Also, the idea would help in position ing our company for sustainable growth, thereby bringing more benefits to stakeholders.
“The acquisition underlines the company’s commitment to Nigeria, especially at this critical period, when energy evolution is gaining ground globally.
“We hope that the acquisition would improve the fortunes of Eternal Oil, as well as improve its performance.”
According to him, the acquisition has further demonstrated the capacity of the operators to make big ticket transactions in the industry.
Recalled that Eternal Oil issued a statement in December 2020, notifying stakeholders, including the Exchange and the general public of the decision by the shareholders to sell part of their holdings in the company.
Thereafter, it announced the implementation of Sale Purchase Agreement, through which Preline Limited would acquire shares for its parent company, Rainoil Limited.
Also, Ogbechie had variously advocated full deregulation of the downstream sub-sector, arguing that the sector is the most regulated in Nigeria. He said Federal Government would be forced to spend N2 trillion this year due to the fact that the sector is not deregulated.
Rainoil Limited is having three ultra-modern petroleum depots in its possession.
The depots are in Delta, Lagos and Cross River states. Besides, the company boasts of 8,000 metric tonnes of Liquefied Petroleum Gas (LPG) in Lagos, over 100 retail outlets and 140 tank trucks for the delivery of petroleum products across the county.