Seplat Energy Plc says it has extended the Share Sale and Purchase Agreement with Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc. (ExxonMobil) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU).
The extension is “to preserve the Transaction pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals,” Seplat said in a filing with the Nigerian Exchange on Wednesday.
Also, Seplat disclosed that the SSPA was “revised” so that in the event the transaction closes, Exxon Mobil Corp will share in a portion of the value of Mobil Producing Nigeria during the period of delay. This value to be shared depends on the MPNU’s production and oil price.
Seplat said that it remains committed to completing the transaction.
As announced on 25 February 2022, Seplat Energy had agreed to acquire the entire share capital of MPNU for a purchase price of $1.283 billion plus up to $300 million contingent consideration. The transformational transaction will create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity.
In August 2022, Seplat announced that it has received the approval of President Muhammadu Buhari to proceed the acquisition.
However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), rejected President Buhari’s consent for the approval of the acquisition.
Few days later, President Buhari reversed his approval of the acquisition.
Buhari’s reversal of his approval was confirmed by the Senior Special Assistant to the President on Media and Publicity,, Garba Shehu.
Shehu said that Buhari’s reversal of his decision and the previous misunderstanding was due to “agencies involved in (the) decision had not coordinated well among themselves.”
Shehu said Buhari’s position is now inline with that of the NUPRC. “Having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported,” he said.
Reacting to the development, the company said it has not received official notification that President Muhammadu Buhari has reversed his approval of the acquisition of ExxonMobil Corporation assets by Seplat Energy Plc.
The equity price of Seplat Energy Plc rose 2.13% on Wednesday on the floor of the Nigerian Exchange. YTD it has gained 2.82%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.