Lagos — Lekoil Nigeria Limited has written to shareholders of Lekoil Limited, tabling the details of its offers; cash and share exchange as its resolve to recover control of all lost assets, including the stakes in Lekoil (Cayman) Limited.
The Nigerian oil firm is offering to either acquire the ordinary shares of Lekoil Limited for cash at GBP0.019, being a premium of 100% to the last trading price of the Ordinary Shares prior to suspension from AIM on October 1, 2021, on the basis of “there being no dilution from the Company following the date of this Offer Document) or “upon satisfaction of the Share Exchange Offer Conditions, acquire the Ordinary Shares of Lekoil Limited in consideration for Lekoil Nigeria B Shares.”
Lekoil Nigeria Limited had earlier written to Shareholders of Lekoil Limited (Lekoil Cayman) with an indicative offer to acquire Lekoil Limited shares and potential share exchange.
The offering, it said is consequent upon alleged breach of governance and lack of trust in the constituted Board of Lekoil Limited.
The boardroom crisis between the two companies began with the convening of an Extraordinary General Meeting, EGM at the instance of Lekoil Cayman Board after Metallon Corporation acquired some shares in the company in a takeover attempt.
Shortly after that acquisition, Lekoil Cayman voted to remove its CEO and founder, Lekan Akinyanmi, (who remains the CEO of Lekoil Nigeria) on the grounds of corporate governance breach.
That action led to a number of high-profile resignations from the Board of Lekoil Cayman including the Chief Financial Officer (CFO), Ed During, who resigned over his inability to continue with a management team allegedly disregarding the recommendations of the CFO as well as posturing in ways capable of misleading regulators.
Metallon sold off its shares in September 2021.