Chairman of Forte Oil Plc, Femi Otedola has announced that he will sell all his shares in the downstream business of the firm from the first quarter of next year.
Forte Oil disclosed the development on Monday while notifying the Nigerian Stock Exchange (NSE) about the divestment which is expected to be completed in the first quarter of 2019.
A letter signed by general counsel of Forte Oil, Akinleye Olagbende, said the business mogul was divesting from the company in order to “explore and maximise business opportunities in refining and petrochemicals.”
The statement read in part: “Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, shareholders and the investing community that its majority shareholder, Mr Femi Otedola, has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75 per cent direct and indirect shareholding in the company’s downstream business.
“Mr Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals.
“The transaction is expected to close in the First Quarter (Q l ) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.”
Otedola became the majority shareholder in the company from 2007 when he bought into Forte Oil using his Zenon Petroleum & Gas Limited.