Shareholders approve acquisition of Ardova shares at N17.88


ardova plcShareholders of energy company, Ardova Plc, at a court-ordered meeting, have approved the proposed acquisition of their shares at the rate of N17.88 per ordinary share subject to the approval of the Securities and Exchange Commission and the court.

This was disclosed in a corporate notice filed on the Nigerian Exchange Limited on Monday stating that shareholders will be releasing their shares at a 28 per cent premium to the company’s share price of N13.90 on 30 November 2022, being the last traded price before the offer.

According to the proposed scheme presented to shareholders, the transaction provides an avenue for the core investor to support the company in raising the required capital to expand its business operations to improve profitability.

Once the sale goes through the ownership of the scheme shares will be transferred to Ignite Investments & Commodities Limited.

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The Chairman for the EGM, Aniola Durosinmi-Etti, said “In recent years, the macro-economic environment in Nigeria had been particularly difficult on the general operations of businesses in the country. Over the past five years, the company has recorded declining margins despite growth in its top line”.

She noted that operating costs had impacted the company’s ability to pay decent returns as evidenced by its dividend payout history in the last five years.

Ardova Plc had in February disclosed its plans to delist from the NGX. According to a statement released then, Ardova notified NGX that Ignite Investments & Commodities Limited has approached the Board of Directors of the company to acquire the shares held by other shareholders of the company at an offer price of N17.38 per share, and subsequently delist the company from NGX.

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