Ardova Plc (AP), a Nigerian integrated energy company, says it has entered discussions with the shareholders of Enyo Retail and Supply Limited on possible acquisition of the company (Enyo).
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This was disclosed on Wednesday, in a statement signed by Oladiende Nelson-Cole, AP’s acting company secretary and general counsel.
AP, formerly Forte Oil, said the deal is expected to be completed by end of the first quarter of 2021 (Q1 2020), adding that this will see the company expand its footprint in Nigeria’s downstream market.
“This announcement is pursuant to the acceptance in principle of AP’s offer and acquisition framework by the shareholders of Enyo, it is subject to the successful completion of a due diligence exercise and the receipt of all required regulatory approvals,” the statement read.
Olumide Adeosun (pictured), chief executive officer of AP, explained that immediately the deal is completed, the company will “look to retain Enyo branded stations which will operate side by side with the AP brand whilst leveraging the strengths of AP and its group companies”.
The statement further disclosed that AP and Enyo will provide more information on progress made on the proposed acquisition.
Enyo, established in 2017, currently operates over 90 stations across Nigeria and attends to over 100,000 retail customers daily across 15 states of the country.
AP has over 450 retail outlets in Nigeria and storage facilities at Apapa, Lagos state and Onne, Rivers state.
Shares of Ardova traded on Tuesday on the floor of the Nigerian Stock Exchange at N20 — the highest in one year.