Ardova Plc, a leading indigenous energy firm, has completed the full acquisition of Enyo Retail and Supply Limited. The acquisition was completed through a wholly-owned subsidiary of the former Bags and Kegs Limited.
This is according to a press statement signed by the Company’s Secretary, Oladeinde Nelson-Cole, and filed with the Nigerian Exchange Limited (NGX).
The disclosure partly reads: “Further to the announcement of 14 June 2021 wherein Ardova PLC (the “Company” or “Ardova”) notified the Nigerian Exchange Limited, its shareholders and the investing public of the execution of a share purchase agreement to acquire 100% equity stake in Enyo Retail and Supply Limited (“Enyo”), the Company is pleased to announce that the Transaction has been completed and all conditions have been satisfied.”
According to the recent notice, Stanbic IBTC Capital Limited and Banwo & Ighodalo advised Ardova while Rand Merchant Bank and Herbert Smith Freehills Paris LLP acted as financial and legal advisers respectively to Enyo.
The recent development comes barely two weeks after a similar deal had occurred in the Nigerian oil and gas industry, following Rainoil’s acquisition of a 61 per cent equity stake in Eterna Oil.
What this means
Following the conclusion of the deal, it is pertinent to note that Enyo Retail and Supply Limited is now a wholly-owned subsidiary of Ardova Plc. The deal is expected to provide significant synergies that will help strengthen the quality of earnings recorded by Ardova Plc.
Most importantly, the recent deal will provide the opportunity for Ardova Plc to spread beyond its currently owned 450 retail outlets. Various media sources reported that about 90 filling stations and 100,000 customers maintained by Enyo will be formally transferred to Ardova Plc.
Ardova Plc is expected to leverage on Enyo’s digital expertise, coupled with its supply and infrastructure backbone to deliver star quality services across the broadened retail network.
What they are saying
Commenting on the transaction, the CEO of Ardova Plc, Mr. Olumide Adeosun said: ‘’ We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining Enyo’s retail outlets and the Company’s retail operations. It will also strengthen the quality of earnings for the Company. The acquisition is another step towards our broader vision of becoming the leading brand in the downstream petroleum sector.”
What you should know
Recall that Ardova Plc had in June 2021 announced the execution of a share purchase agreement with Enyo. The firm announced that it had reached a definite agreement to buy out 100% stake in the latter.
Ardova Plc is a leading indigenous and integrated energy company involved in the distribution of petroleum products with a strong presence in the thirty-six (36) states of Nigeria and the Federal Capital Territory, Abuja.
The company boasts of an extensive network of over 450 retail outlets and several storage facilities across the nation. The company was incorporated as British Petroleum (Nigeria) in 1964 and is also listed on Nigerian Exchange Limited.