Seplat Petroleum Development Company Plc has announced the approval of the court on its acquisition of Eland Oil Plc.
In a notice filed at the Nigerian Stock Exchange on Tuesday, Seplat said the boards of Seplat and Eland had announced that they had reached agreement on the terms of a recommended cash acquisition by Seplat of the entire issued and to be issued ordinary share capital of Eland.
It said the acquisition was to be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
According to the notice, a scheme document was posted to Eland shareholders on October 28, 2019, setting out the terms of the acquisition.
Seplat said on December 12, 2019, the court sanctioned the scheme.
The notice read in part, “Eland and Seplat are pleased to announce that the court order sanctioning the scheme has today been delivered to the Registrar of Companies.
“Accordingly, the scheme has now become effective and the entire issued and to be issued ordinary share capital of Eland is wholly owned by Seplat.
The Chief Executive Officer, Seplat, Austin Avuru, said the company was delighted to have successfully completed the acquisition of Eland, which further enhanced its footprint in Nigeria and provided opportunities for enhanced scale, diversification and growth.
He said, “Admission to trading of the Eland shares on AIM will be cancelled with effect from 7.00 am. on December 18, 2019.
“As a result of the scheme becoming effective, share certificates in respect of Eland Shares have ceased to be valid and of value and entitlements to Eland Shares held in uncertificated form in CREST will be cancelled.”
Avuru stated that the settlement scheme shareholders on the register at the scheme record time, being 6.00 pm. on December 16, 2019, would receive 166 pence in cash for each scheme share.
He added that the consideration due to the scheme shareholders would be sent no later than December 31, 2019.