SEC approves Acorn Petroleum’s N5b recapitalisation drive

SEC

SEC

THE Securities and Exchange Commission (SEC) has approved the basis of allotment of the rights issue for, Acorn Petroleum Plc, under the company’s recapitalisation programme.

The development signals the completion of the first phase of the company’s capital raising exercise, targeted at enhancing the oil outfit’s operational profile.

The company has also immediately commenced the second phase of the capital raising exercise, which will be a combination of special/private placement to selected investors, to raise additional N5 billion in new equity.

The company has during its last yearly general meeting obtained approval from its shareholders to raise additional equity by way of the rights issue and placement with new investors.

Under the recapitalization scheme, the company will focus on its core downstream activities, with strategic corporate restructuring, enhanced working capital and investment in critical infrastructural facilities like construction of storage depots at Lagos, Port Harcourt and Abuja airports.

The company will also specifically embark on construction of a lubricants blending plant, expansion of its retail outlets chain, LPG plants and the development of an ultra-modern oil terminal.

As part of its strategic plans to give liquidity and exit options for its shareholders, the company has commenced the process of listing its existing shares with NASD via listing by introduction. This is expected to be concluded in next month.

Acorn Petroleum also debunked rumours about the reported sale of its assets by Assets Management Company of Nigeria (AMCON), explaining that the company does not have any assets encumbered by AMCON.

In a statement by issued by the organization, it explained that “during 2013, the company entered into an agreement with AMCON, wherein the company sold one of its assets to AMCON in full and final payment of its indebtedness. This asset was in turn leased back to the company for a period of time with an option to buy back if the company desires.

“So, it is erroneous to report that the company asset was put up for sale when in actual fact the asset in question does not belong to the company and not carried in its books.



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