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Prudent Energy Services Limited, the new majority shareholder of Forte Oil Plc, is set to acquire fresh N22 billion worth of shares of the company.

The public takeover bid, expected to be accomplished via a Mandatory Tender Offer (MTO), will enable Prudent Energy to own the majority stake in Forte Oil’s ordinary shares as required by the Nigerian Stock Exchange’s extant rules.

Last week, there was a report on the full acquisition of Forte Oil’s majority stake of 75% which was previously held by Mr Femi Otedola, the company’s former Chairman.

The tender bid, which will be executed by Ignite Investments and Commodities Limited on behalf of Prudent Energy, seeks to procure N22.3 billion worth of shares from the minority shareholders of Forte Oil Plc.

The capital market advisers to the new core investors said it is necessary for the new investor to take over Forte Oil’s minority shares.

Section 131 of the Investment and Securities Act, as well as Rule 445 of the Securities and Exchange Commission, requires anybody or any organisation that acquires at least 30% stake in a company to make an MTO to other minority shareholders.

Prudent Energy’s earlier acquisition of the majority shares in Forte Oil saw the former purchase 964.097 million ordinary shares of 50 kobo each of the latter’s shares. The total issued shares and outstanding shares of Forte Oil is 1.302 billion shares of 50 kobo each, meaning that minority shareholders hold 338.38 million ordinary shares of 50 kobo each.