New Forte Oil CEO says name likely to be changed

The chief executive officer, Forte Oil Plc, Olumide Adeosun, says the company will most likely undergo a name change to reflect its new structure.

Adeosun spoke at a briefing to unveil strategies the company’s new management in Lagos on Tuesday.

Femi Otedola, former chairman of Forte Oil, announced on June 19 that he had completed sale of his majority shareholding in the business to Prudent Energy, a local oil trading firm.

Following the sale, Forte Oil announced Adeosun’s appointment as CEO after the resignation of Akin Akinfemiwa.

Assuring shareholders of business continuity, Adeosun said the new owners of the oil firm are in for long term investment.

“The name FO is actually personal to an individual and that individual has sold his shares and it’s very likely that we are going to rebrand,” he said.

The CEO also said Forte Oil shares will not be delisted from the Nigerian Stock Exchange (NSE) neither will minority shareholders be bought out through mandatory tender offering (MTO) as speculated.

An MTO, in line with the provision of section 131 of the Investment and Securities Act (ISA) and Rule 445 of the Securities and Exchange Commission (SEC), makes it mandatory for any investor or person that acquires between 30% and 50% of a company’s voting rights to bid publicly to other minority shareholders.

The law was put in place to ensure that no shareholder could gain control of a public company either directly or indirectly without offering the minority shareholders an opportunity to exit the company at a fair price.

“Our message to our minority shareholders is that we are going to sustain the business here, we want people to retain their shares in this company,” Adeosun said.

“Our desire is that people who are stockholders of this company continue to remain stockholders of this company and benefit from the dividend we hope to discuss over time.”

The new board of directors will hold an inaugural meeting on Wednesday, June 26.