NIPCO to enhance Mobil’s performance through acquisition
The Group Managing Director, NIPCO Plc, Mr.Venkataraman Venkatapathy, has said new strategies to enhance the performance of Mobil Oil Nigeria will be injected into the company to create greater wealth for investors.
He said this on Thursday at the floor of the Nigerian Stock Exchange, during the closing gong ceremony, held to celebrate the successful completion of its Mobil acquisition.
Venkatapathy, who thanked the stock broking community, and expressed gratitude to the leaders and management of the Nigerian Stock Exchange for a quick and seamless acquisition process, said the success is a signal of investors confidence in the new brand.
He however assured that returns to shareholders will soar higher with a combined strength from both companies.
“Our acquisition, is a natural expansion plan, with a combined strength we will ensure that the confidence goes higher.
“NIPCO is a strong player in the downstream industry we have 10 percent of the market share, while Mobil has 6 percent, combined we have 16 percent.
“Both companies will work together leveraging its own strength and reducing costs of operations towards ensuring efficiency”
Commenting, Mr. Sam Ndata, the Doyen of the Exchange urged the company to engage the market with a fact behind the figures of the company.
He said this will further enhance the viability and strengthen partnership with the market community.
NIPCO had on the 31st March, completed the 60 percent acquisition stake of Mobil Oil Nigeria owned by ExxonMobil in a deal worth N90 Billion and one of the biggest in the downstream sector in recent years.
According to market sources, the move by NIPCO, will serve as a significant breakthrough, to bolster investors’ confidence and appetite in the sector, following the deregulation initiative of the Federal Government of Nigeria in the downstream oil and gas industry.
The acquisition also ensures NIPCO’s continuous growth and expansion of its Nigerian retail footprint, increase efficiency gains (economies of scale) whilst adding tremendous value to the downstream sector.
