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NIPCO acquisition of Mobil oil will raise investors’ confidence – Stock Exchange boss

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By Sebastine Obasi

Mr. Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, NSE, has expressed confidence in   NIPCO’s ability to ensure continuous investors interest in the capital market following its recent  acquisition of 60 per cent stake in Mobil Oil Nigeria (MON).

Onyema who stated this when the management of NSE paid a courtesy visit to NIPCO’s office in Apapa, Lagos, described the deal as one of the largest acquisitions in the Nigerian downstream sector.

He maintained that the strategic acquisition will no doubt enhance the company’s continuous growth and expansion in Nigeria, as well as increase value to investors and other stakeholders.

Onyema stated: “We are keen to support businesses to achieve greater success so that they can thrive within the enabling environment, as well as provide organizations with various opportunities to fund their long term objectives.”

He explained that NIPCO as a critical stakeholder needs all the support with various initiatives and opportunities available through the capital market to enable her excel in the sector.

•Oscar Onyema, CEO, Nigerian Stock Exchange

“We think it is a good development for the company.  It will also give great potential for indigenous company to get global visibility. We are indeed impressed with NIPCO’s track record on safety and how serious they take safety.”

Onyema, however urged the management of NIPCO to reconsider enlisting the company on the Nigerian Stock Exchange, adding that it would give more credibility and attract more shareholders to the company.

According to him, there are so many benefits that are attached to a company that is listed on the NSE.

“One of the benefits is the flexibility to raise  capital to enhance corporate development and governance.”

In his remarks, the Managing Director of NIPCO, Mr Venkataraman Venkatapathy lauded NSE and its management team for the visit to NIPCO.

He stated: “The transition period will enable NIPCO to effectively manage a smooth and successful completion of the transaction. NIPCO considers this acquisition an important synergy.

“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset (MON), we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” Ventakatapathy added.

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