Lekoil Nigeria Makes Big Comeback, Presents Shareholders New Deal

Lekoil Nigeria Limited, a frontline Nigerian oil firm has demonstrated its resolve to recover control of all lost assets including the stakes in Lekoil (Cayman) Limited. As a sequel to its announcement on December 3, 2021, Lekoil Nigeria has today written to shareholders of Lekoil Limited, tabling the details of its offers; cash and share exchange.

The Nigerian oil firm is offering to either “acquire the Ordinary Shares of Lekoil Limited for cash at GBP0.019, being a premium of 100% to the last trading price of the Ordinary Shares prior to suspension from AIM on October 1, 2021 (on the basis of there being no dilution from the Company following the date of this Offer Document)” or “upon satisfaction of the Share Exchange Offer Conditions, acquire the Ordinary Shares of Lekoil Limited in consideration for Lekoil Nigeria B Shares.”

The copy of the 24-page document was published on the company’s website as it promised to do a fortnight ago. 

Lekoil Nigeria Limited had earlier written to Shareholders of Lekoil Limited (Lekoil Cayman) with an “indicative offer to acquire Lekoil Limited shares and potential share exchange”.

The offering is consequent upon alleged breach of governance and lack of trust in the constituted Board of Lekoil Limited, which had been accused of jeopardising the future of the shareholders’ investments for the pecuniary gains of a few.

The boardroom crisis between the two companies began with the convening of an Extraordinary General Meeting (EGM) at the instance of Lekoil Cayman Board constituted after Metallon Corporation acquired some shares in the company in a takeover attempt. Shortly after that acquisition, Lekoil Cayman voted to remove its CEO and founder, Lekan Akinyanmi, (who remains the CEO of Lekoil Nigeria) on the grounds of corporate governance breach.

That action led to a number of high-profile resignations from the Board of Lekoil Cayman including the Chief Financial Officer (CFO), Ed During, who resigned over his inability to continue with a management team allegedly disregarding the recommendations of the CFO as well as posturing in ways capable of misleading regulators.

Metallon sold off its shares in September, 2021, through a process that is still shrouded in secrecy.

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