C & I Leasing Plc, a leasing and business service conglomerate, has concluded the buyout of 27.5 per cent minority stake in C & I Petrotech Marine Limited (CPML), a joint venture with six vessels presently deployed to long term contract with a leading oil firm.
In a filing to the Nigerian Stock Exchange (NSE) yesterday, the company said the parties engaged an independent adviser to value the shares of the CMPL before the consummating the buyout.
“As a result of the transaction CMPL is now fully owned subsidiary of C & I Leasing Plc,” the company said in the filing signed by the Company Secretary, Mbanugo Udenze.
The company had explained that the N7 billion bond recently raised by would be largely invested in business expansion and restructuring of its debts over a period of five years among other initiatives which will guarantee increased profit margins and returns for shareholders.
Commenting on the development, the Managing Director of C & I Leasing Plc, Mr. Andrew Otike-Odibi said the firm’s its journey into marine sector as a service provider for the oil and gas sector actually started through CPML joint venture in 2010 and has over the years culminated in the ownership of over 20 vessels consisting of crew boats, pilot boats, patrol boats, and platform support vessels for providing services such as line and hose handling, berthing and escort services, mooring support, fire-fighting, pollution control, security and floating and self-elevating platforms.
“This is clearly reiterate our commitment to growing our marine services business and gaining leadership in the field. It is hoped that this buyout will further the company’s drive to restructuring and repositioning our marine business for enhanced profitability,” he added.
The company has been recording improved financial results in recent times, which the MD had attributed to the strength in the diversity of its business.
He said: “Our three business lines namely, marine, fleet management and outsourcing are gaining strength in their different markets with each contributing positively to the overall performance of the business. This is not without the difficulties faced in the operating environment with rising financing and operating costs coupled with continuous pressure on turnover. We remain focused on sustaining delivery of superior customer service and continued diversification of earnings, to take advantage of growth opportunities in the markets and business segments we operate in.”
He added that the company is also exploring additional avenues to provide exceptional support services to our numerous clients in meeting their diverse business needs, whilst maintaining the high quality of our product offerings, declaring “we remain optimistic about our growth prospects.”