Ardova Plc (NSE: ARDOVA) have entered discussion with shareholders of Enyo Retail and Supply Limited for a possible acquisition of the company by ARDOVA. This was made know in a press release by Ardova Plc on The Nigerian Stock Exchange.
Ardova Plc is a Nigerian leading indigenous and integrated energy company involved in the distribution of petroleum products. It has an extensive network of over 450 retail outlets in Nigeria and significant storage facilities in Apapa, Lagos and Onne, Rivers State.
Enyo is one of the newest and fastest growing retail and supply companies in the downstream sector. The company currently operate over 90 stations across Nigeria attending to over 100,000 retail customers daily across 15 states of the country.
The announcement is pursuant to the acceptance in principle of ARDOVA’s offer and acquisition framework by the shareholders of Enyo. It is also subject to the successful completion of a due diligence exercise and the receipt of all required regulatory approvals.
CEO of Ardova, Mr. Olumide Adeosun, explained that immediately following completion, Ardova will look to retain the Enyo branded stations which will operate side by side with the Ardova brand whilst leveraging the strengths of Ardova and its group companies.
He stressed further that the parties are committed to concluding the deal by the end of Q1 2021.
Ardova Plc and Enyo Retail & Supply Limited will provide further information on progress made on the proposed acquisition.
ARDOVA has 1.302 billion outstanding shares, and a market capitalization of N26.049 billion. Its share price at the end of trading on Wednesday 13th January, 2021 was N20.00. Its 52 week high price is N20.60 while its 52 week low price is N9.40.
A week ago, 6th January 2021, ARDOVA share price closed at N13.55, it has since enjoyed a sustained price rally that amounted to a 47.6% increase in price.
Was it a coincidence that the share price surged ahead of the announcement of this acquisition, or was insider trading in play? We cannot provide an appropriate answer for the question, but we can dare to say, “a frog does not run in the day time for nothing.”
By; Nnamdi M.