NIPCO’s Acquisition Of Mobil Oil Will Boost Investors Confidence -NSE
Oscar Onyema, chief executive officer, Nigerian Stock Exchange (NSE) has expressed utmost confidence in NIPCO’s ability to ensure continuous investors interest in the capital market following its recent 60 per cent acquisition stake in Mobil Oil Nigeria (MON). NIPCO is a Nigerian own investment company.
Onyema who gave the assurance during a courtesy visit with its management team to NIPCO’s company in Apapa, Lagos described the deal as one of the largest acquisitions in the Nigerian downstream sector.
He maintained that the strategic acquisition will no doubt enhance the company’s continuous growth and expansion in Nigeria as well as add increased value to investor and other stakeholders.
The NSE CEO stated that at the exchange, “We are keen to support businesses to achieve greater success so that they can thrive within the enabling environment as well as provide organizations with various opportunities to fund their long term objectives.”
Onyeama stressed that NIPCO as a critical stakeholder needs all the support with various initiatives and opportunities available via the capital market to enable her excel in the sector. According to him, NIPCO 60 per cent acquisition stake in Mobil Nigeria Company was a great development for the industry and indeed a great achievement for Nigerian own investment company.
“An industry that is expanding and imparted greatly to the growth of the oil and gas sector like NIPCO needs to be commended growing the sector and boosting the local content development. So we think it is a good development for the company, it also give great potential for indigenous company to get global visibility” he said.
The NSE CEO further said, `We are indeed impressed with NIPCO track record on safety and how serious they took safety very important. Onyema, however urged the management to NIPCO to reconsidered enlisting NIPCO company on the Nigerian Stock Exchange, adding that it would give more credibility and attracted more shareholder to the company.
According to him, There are so many benefits that are attached to companies that are listed on the NSE, we urged NIPCO to embrace being listed at the NSE. “One of the benefit is flexibility to raise capital to help enhance corporate governance, and to make it easier to raise fund in the banking industry, to give sustainability in terms of fund rising among others benefit.
In his remarks, managing director of NIPCO, Mr Venkataraman Venkatapathy lauded NSE CEO and its management team visit to the company, adding that the company.
He said that the company which deal with import Automotive Gas Oil (AGO) and Premium Motor Spirit (PMS) directly into the country and distribute the products to fuel marketers across the nation.
“The transition period will also enable NIPCO Plc to effectively manage a smooth and successful completion of the transaction. NIPCO considers this acquisition an important synergy.
“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset (MON), we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” Ventakatapathy added.
He noted that the Nigerian economy still provides a robust and premium return on investment, adding that his company was privileged to have been given this opportunity by ExxonMobil on its home ground. “To our shareholders and stakeholders, we say welcome to a new dawn. A new era that will usher in stability, prosperity, sustainability and growth,” Ventakatapathy said.
