Otedola receives $19 million in arbitration award from Ardova over Forte Oil sale

Energy tycoon Femi Otedola has been given $19 million in arbitration award above the share obtain agreement (SPA) involving the sale of Forte Oil now Ardova Plc, a resource with knowledge of the matter told Quality Times.

The settlement followed a ruling final October by the London Courtroom of Worldwide Arbitration (LCIA), buying Ignite Investments and Commodities Constrained, the distinctive objective acquisition firm of Ardova’s Chairman Abdulwasiu Sowami, to make SPA payments fewer the quantity awarded for 1 of the statements by Zenon Petroleum.

Ignite Investments in 2019 agreed with Forte Oil to acquire 983 million shares equal to a 75 per cent stake from the latter, a offer truly worth N64.9 billion to be paid out in three instalments.

The business would later allege a breach of guarantee by Zenon Petroleum in regard of the SPA, triggering Ignite Investments to start a lawful action, exactly where it produced statements versus Zenon.

Zenon submitted a counterclaim in opposition to Ignite Investments in response to a declare submitted by the latter at the LCIA following an first move to resolve the dispute failed.

The LCIA dominated in favour of Zenon in 3 out 4 statements previous Oct.

In February, Mr Sowami made available minority shareholders in Ardova N17.38 for every share translating to a complete of N16.9 billion in get to invest in out their 25.9 for each cent stake (970.7 million shares) and consider the firm non-public.

“The give value of ₦17.38 signifies a premium of 22.44% and 24.38% to the 30-working day and 60-day volume weighted typical share price of ₦14.19 and ₦13.97 respectively, on 30 November 2022,” Ardova mentioned in a assertion.