Energy billionaire, Femi Otedola had won a $19 million arbitration award on the share purchase agreement surrounding the sale of Forte Oil, now Ardova Plc.
According to Premium Times, the agreement was reached in response to a decision made by the London Court of International Arbitration in October.
The agreement mandated that Ignite Investments and Commodities Limited’s Chairman, Abdulwasiu Sowami of Ardova’s special purpose acquisition company, make SPA payments less the amount granted for one of Zenon Petroleum’s claims.
Ignite Investments in 2019 agreed with Forte Oil to acquire 983 million shares equal to a 75 percent stake from the latter, a deal worth N64.9 billion to be paid in three installments.
The company would later allege a breach of warranty by Zenon Petroleum in respect of the SPA, causing Ignite Investments to launch a legal action, where it made claims against Zenon.
After an unsuccessful attempt to settle the dispute, Zenon filed a counterclaim against Ignite Investments in response to a claim made by the latter at the LCIA.
Last October, the LCIA found in Zenon’s favor on three of the four claims.
In order to acquire their 25.9% holding (970.7 million shares) and take Ardova private, Mr. Sowami offered minority shareholders N17.38 per share, or N16.9 billion, in February.
The company would later allege a breach of warranty by Zenon Petroleum in respect of the SPA, causing Ignite Investments to launch a legal action, where it made claims against Zenon.
After an unsuccessful attempt to settle the dispute, Zenon filed a counterclaim against Ignite Investments in response to a claim made by the latter at the LCIA.
Last October, the LCIA found in Zenon’s favor three of the four claims.
In order to acquire their 25.9% holding (970.7 million shares) and take Ardova private, Mr. Sowami offered minority shareholders N17.38 per share, or N16.9 billion, in February.
According to a statement by Ardova, the offer price of 17.38 reflects a premium of 22.44% and 24.38% over the 30- and 60-day volume-weighted average share prices of 14.19 and 13.97 on November 30, 2022, respectively.
