The board of Capital Oil Plc has been given the go-ahead to accept the N600 million the management of Pinnacle Oil and Gas Limited is planning to invest in the company.
Business Post reports that Pinnacle wants to take up a stake in Capital Oil through a private placement.
The company has expressed its intention to acquire about 6 billion unalloted/treasury ordinary shares of Capital Oil at 10 kobo per share, which amounts to N600 million.
On Thursday, July 26, 2018, Capital Oil Plc held an Extra Ordinary Meeting (EGM), where the matter was deliberated on.
During the meeting, shareholders of the oil firm gave their approval to the transaction, though still subject to the approvals of both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
It was gathered that during the EGM, the shareholders modified an ordinary resolution of the company passed at their Annual General Meeting (AGM) on December 14, 2016, stating that N3,384,400,000, unalloted/or treasury ordinary shares be sold to willing and interested investors.
This was changed to, “That the offer of the 6 billion unalloted/or ordinary shares made by the board of directors to willing and interested investors subject to the approval of the appropriate authorities be and is hereby ratified.
“That Pinnacle Oil and Gas Limited be accepted as a willing and interested investor for the acquisition of the said 6 billion ordinary shares.
“That the 10 kobo per share offer made by Pinnacle Oil and Gas Limited amounting to N600 million be accepted by the company and its shareholders.”
Pinnacle Oil and Gas Limited is an independent petroleum marketer in Nigeria established in 2007 by Mr Peter Mbah. It is involved in petroleum product distribution, tank farm facilities, haulage, marine logistics and storage facilities.
It is believed that the fresh N600 million would be used to put Capital Oil back on track, leading to more value for shareholders.