OBAGADAFFI:


Amidst controversial N140 billion purchase, NNPC halts takeover of OVH

The Nigerian National Petroleum Company Limited (NNPC Ltd) has said it is unable to complete the acquisition of OVH Energy Marketing Limited‘s downstream assets.

The declaration is contained in a letter dated 17 January, addressed to the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and signed by the managing director of NNPC Retail Limited, Huub Stokman.

The letter is titled, ‘Notification of inability to complete OVH Energy Marketing Limited terminal, plants and depot takeover and intent to apply for operating licenses’.

The NNPC Ltd had in its latest financial statements said it paid cash amounting to $325.09 million (N140.559 billion) for the acquisition of Oando-branded retail stations and a reception jetty in Apapa, among other facilities.

However, in its letter, the NNPC Ltd said it has become evident that it cannot complete the merger deal.

The company said it intends to apply for operating licenses for the facilities under OVH Energy Marketing Limited.

“We appreciate the ongoing collaboration and support from the National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in facilitating the acquisition of OVH Energy Marketing Limited.

Background

The NNPC Ltd had in October 2022, announced the acquisition of OVH Energy Marketing Limited’s downstream assets. By this acquisition, OVH Energy would be merged with NNPC Retail, a subsidiary of NNPC Ltd.

The assets acquired from the company, which operates Oando filling stations, also include a reception jetty with 240,000 metric tonnes monthly capacity and eight liquefied petroleum gas plants, three lube blending plants, three aviation depots, and 12 warehouses.

But in June 2023, PREMIUM TIMES’ investigation on the acquisition exposed the secret deals and the complicated ownership structure that left managerial control of NNPC Retail in the hands of OVH Energy Marketing.

The report also exposed how OVH Energy Marketing only had about 94 stations and how over 100 stations were leased.

In addition, the report highlighted how Mr Stokman, an expatriate and former Chief Executive Officer of OVH Energy, emerged as the new Managing Director of NNPC Retail, a development that further compounded the structure of NNPC Retail.

ProphetUtuocha:
My predictions for 2024:
- Oando will not delist. It will reposition and will appreciate by minimum 400% this year.
- Most banks, especially FUGAZE will outperform
- The Dangote stocks will underperform
- Many will pay school fees in the insurance sector
- Nigerian economy will start a crucial recovering process.
- Foreign investors will gradually return from 1st half of the year
- Nigeria's rating will go up as positive economic indicators ramp up.

sky2891:

It seems you have given up on Oando

emmanuelewumi:



They are learning the hard way.


I just pity the guy who sold his land to buy dollar at N1700

gbengafaro1986:
Dear Sudden Dollar Investors and Speculators


welcome back to NGX


We missed you

ProphetUtuocha:
Those who want to sell should hurry up, we will continue to accumulate Oando. 400% on Jan 1 price assured!

ProphetUtuocha:
My predictions for 2024:
- Oando will not delist. It will reposition and will appreciate by minimum 400% this year.
- Most banks, especially FUGAZE will outperform
- The Dangote stocks will underperform
- Many will pay school fees in the insurance sector
- Nigerian economy will start a crucial recovering process.
- Foreign investors will gradually return from 1st half of the year
- Nigeria's rating will go up as positive economic indicators ramp up.

megawealth01:
CHAI... People here now rushing OANDO...

PROPHET any update?

megawealth01:


Will Oando benefit?

Prophet abeg help us find out