In a message to the Nigerian Stock Exchange, NSE, yesterday the management of Mobil Oil Nigeria Plc said the Nigerian entity “has been informed by its majority shareholder, ExxonMobil Oil Corporation, that it has agreed, subject to regulatory approvals, to sell its shares representing 60 per cent of Mobil Oil Nigeria’s shares to Nipco Investments Limited, a wholly-owned subsidiary of Nipco Plc”.
The deal did not affect the price of the equity yesterday which closed at N186 per share same as opening price while 57,621 units of the company’s shares valued at N11.2 million were traded in 25 deals. With this purchase, Nipco Plc will directly and indirectly own 65.5 per cent of the issued share capital of the leading downstream marketer.
Though oil industry sources attributed the development to turbulence in the economy at large and the Nigerian oil industry in particular, management of Mobil insisted it was on strategic reasons other than those given by the industry sources. Reacting to Vanguard’s questions, Mobil’s Communications Manger, Ogechukwu Udeagha, stated: “This decision is in no way a reflection of our view on the local business climate, financial results or the workforce.”