Indigenous fuel distributor, Nipco Plc, has acquired an additional 3.23% stake in fuel retailer, 11 Plc, (formerly Mobil Oil Nigeria), for $16 million. This brings Nipco’s total stake in the latter, to 70%.
The current development comes after Nipco launched, last June, the offer for the 3.23% stake it needed to get 70% of 11 Plc. to take over the firm, in accordance with Nigerian regulation. Under these rules, Nipco “had to offer the same price of 417.12 naira per share to minority investors”, Reuters reports.
Before that, Nipco which held 6.7% of ex-Mobil Oil bought from Exxon Mobil Corp its 60% stake in the company when it pulled out of its capital. The transaction took place in October last year and was valued at $248 million, according to a document seen by Reuters.
Established in 1951, Mobil Oil Nigeria (now 11 Plc or Double One as it pronounced), is a subsidiary of ExxonMobil. The company currently operates over 200 retail outlets located in all 36 states of Nigeria and owns three plants located in Apapa, Lagos State, that manufacture lubes, petroleum jelly, and insecticide.