AP Shares: How Otedola acquired 55.3%

More facts emerged Wednesday on how Mr. Femi Otedola acquired a whopping 55.3% share of African Petroleum Plc, just as the House of Representatives began conducting public hearing on the controversial sale of 27.5% stake of African Petroleum shares to Zenon Petroleum and Gas Plc owned by Mr. Femi Otedola.

A rare peep into the majority share structure of the company reveals that Otedola, in his own personal capacity now holds a comfortable 29.3% while Zenon Petroleum and Gas comes second with 26%. Afribank Plc has 16% making it the third largest stakeholder. NNPC still retains 1.5% and while the balance shares are spread amongst the 161, 200 shareholders. So with or without the 27.5% NNPC shares that Zenon acquired, Mr. Femi Otedola remains the undisputed majority shareholder of the company.

The 29.3% were acquired on the secondary market on the floor of the Nigerian Stock Exchange, and contrary to the widespread belief that NNPC’s controversial shares sold to Zenon was 28.7%.

A highly competent source has revealed that the actual Shares held by NNPC preceding the sale was 27.5% out of which 26% was sold to Zenon for N17 billion. A merger of Otedola’s personal holding of 29.3% and Zenon’s 26% holding brings the total shares held by Otedola to a whooping 55.3%.

The public hearing is coming on the heels of a petition the House received from Sadiq Petroleum Ltd on the reacquisition of AP Plc shares through capitalization of undisclosed debt. The House committee decided to hold the 2-day public hearing on Tuesday and Wednesday to resolve the crisis.

Interestingly, since Otedola’s entry into AP, the share price of the company has appreciated by 176% consistently toping gainers chart on the floor of the exchange over a 3 week run. According to many analysts, his entry rekindles confidence in African Petroleum Plc. The company under Otedola is said to be about to embark on an ambitious redevelopment of AP Filling stations in some of the major cities, beginning from Lagos.

NNPC had acquired the equity interest through its staff pension fund in 2005 through a debt-swap of over N10 billion debts AP owed the corporation. This acquisition was subsequently gazetted. Other major shareholders include Asset Management Company Limited (ASSEMAL), a related company to Afribank Plc.