Forte Oil (FO) Plc., a Nigerian indigenous Oil and Gas company, rose to the highest in almost six months Monday on plans by Femi Otedola, its majority shareholder, to fully divest from the company.
The stock rose to N31.25 per s hare at the close of trading in Lagos, its highest since June 24, 2018, according to records from the Nigerian Stock Exchange.
Otedola, a Nigerian billionaire, plans to sell his “75% direct and indirect shareholdings in the company’s downstream business,” Forte said in a statement posted on the NSE website.
“Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals,” Forte explained.
The transaction is expected to be completed in the first quarter of 2019, subject to the satisfaction of various conditions and receipt of applicable regulatory approvals, it added.
Forte emerged the fifth-best performer on the Nigerian Stock Exchange on Friday, December 21, after gaining 9.63 percent to close at N28.45 per share, its highest level since July 13, 2018.
The rally in the stock price began Tuesday, December 18 after the equity rose by 9.91 percent to close at N23.85 per share. The gain was sustained Wednesday when it gained 9.85 percent to close at N26.20 per share but shed 0.95 percent at the close of trading on Thursday.
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