Nigeria: Lekoil responds to press speculation
08 Jan 2021
LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa, notes the recent local press speculation in relation to a letter received by the Company from the Honourable Minister of State of Petroleum Resources of Nigeria in connection with the prior acquisition of a significant shareholding in the Company by
Metallon Corporation and the requirements that a significant change in shareholding be in adherence with the requirements of Nigerian Petroleum Act and related guidelines and procedures.
The Company confirms that it has notified Metallon of this matter and has advised Metallon, as a matter of urgency, to liaise with the Federal Ministry of Petroleum Resources in order to resolve any issues arising from the acquisition of Metallon s shareholding.
Lekoil is listed on the London Stock Exchange.
The Ministry of Petroleum Resources had intervened in the feud in the past which did not bode well for the future of the firm which fell prey to a widely reported loan scam last year.
Gold producer, Metallon, acquired shares in Lekoil in March but presently wields the controlling stake in the company, with 15.1 percent shares.
The company wants shareholders to appoint three extra directors to the board of four in hope that the action would improve corporate governance in Lekoil.
“We believe Lekoil’s assets, specifically Otakikpo, are being substantially undervalued by the market and the value of these assets could be realised if the proposed changes are made to the board,” said London-based Metallon in a December 11 note to shareholders.
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By Reuters Staff
1 Min Read
JOHANNESBURG (Reuters) - Lekoil shares fell 26% on Thursday after the Nigeria-focused oil and gas company flagged the possibility of sanctions from Nigeria’s petroleum ministry over a stake purchase by Metallon, which is now Lekoil’s top investor.
Lekoil said it received a letter from the minister of petroleum saying Metallon’s stake build - which began in March 2020 and resulted in the Zimbabwe-focused gold miner holding 15.1% of Lekoil - must be compliant with ministerial guidelines.
“In the event that Metallon’s acquisition. has not complied with Nigerian legislation and in the absence of any suitable remedial action, sanctions could be imposed directly on the company by the Ministry of Petroleum Resources,” Lekoil said in a statement.
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