BUSINESS

Ardova Acquires Enyo Retail &Supply, Kicks Off N60b Bond Issuance Programme

Ardova PLC, a Nigerian leading indigenous and integrated energy company said it has completed the acquisition of 100% equity stake in Enyo Retail and Supply Limited through a wholly owned subsidiary of the company, Bags and Kegs Limited, and with effect from 16 November 2021.

The company had on 14 June 2021 notified the Nigerian Exchange Limited, its shareholders and the investing public of the execution of a share purchase agreement to acquire 100% equity stake in Enyo Retail and Supply Limited .

In another notice on Wednesday, the company announced the transaction had been completed and all conditions had been satisfied.

The notice said Stanbic IBTC Capital Limited and Banwo & Ighodalo advised Ardova while Rand Merchant Bank and Herbert Smith Freehills Paris LLP acted as financial and legal advisers respectively to Enyo.

Commenting on the transaction, Mr. Olumide Adeosun, CEO of the Company said: “We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining Enyo’s retail outlets and the Company’s retail operations. It will also strengthen the quality of earnings for the Company. The acquisition is another step towards our broader vision of becoming the leading brand in the downstream petroleum sector.”

In another development, Ardova PLC announced the establishment of its ₦60,000,000,000 bond issuance programme  and the successful issuance of ₦11,444,000,000 (Eleven Billion, Four Hundred and Forty-Four Million Naira) 7-year 13.3% fixed rate bonds and ₦13,856,000,000 (Thirteen Billion, Eight Hundred and Fifty-Six Million Naira) 10-year 13.65% fixed rate bonds being tranches A and B respectively of the series 1 bonds under the Programme.

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A notice at the Nigerian Exchange said the bonds “ duly registered with the Securities and Exchange Commission.

“An application will be made to list the Bonds on the FMDQ Securities Exchange Limited.”

Vetiva Capital Management Limited and Stanbic IBTC Capital Limited were said to have acted as Joint Issuing Houses, whilst Banwo & Ighodalo acted as Transaction Counsel. The trustees were advised by Aluko & Oyebode. Commenting on the transaction, Mr. Olumide Adeosun, CEO of the Company said: “We are pleased with the successful conclusion of this transaction which again demonstrates investors’ confidence in the Company and provides additional resources for the Company to continue its expansion projects.”

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