OpeOluwani Akintayo
Lagos — Following recent battle of supremacy between Lekoil Nigeria and Lekoil (Cayman) Limited, SweetcrudeReports findings shows that Savannah Energy Investments Limited, a wholly owned subsidiary of Savannah PLC, is making moves to buy over Cayman’s shares.
Findings showed that Lekoil Cayman has filed for an entry into a convertible facility agreement (option agreement and the tripartite) with Savannah Energy Investments Limited.
If Savannah succeeds in obtaining ministerial consent, Lekoil Nigeria still gets to keep her assets in the deal.
Lekoil Nigeria said it considers the Savannah deal to be “corrupt and unlawful”, alleging that the deal is in “contravention of applicable Nigerian law, given that prior Ministerial consent is required, and this can only be achieved with the express consent of and facilitation by Lekoil Nigeria”.
Lekoil Nigeria said the Savannah deal is “massively dilutive at 0.5p per share to shareholders and is destructive to shareholder value”, insisting that the proposed dilution is subject to an ongoing litigation and cannot stand until a judge decides.
In a note to SweetcrudeReports, Lekoil Nigeria said it will be taking immediate legal action to restrain any issuing of shares.
“… she is also concerned at the level of misrepresentation being peddled by Lekoil (Cayman) Limited, noting that her subsidiary, Lekoil Oil and Gas Investments Limited, has fully repaid all existing loan facilities from Lekoil Limited to Lekoil Oil and Gas Investments Limited and is therefore not indebted in any way to Lekoil Limited. She firmly refutes any claims by Lekoil Limited to the contrary as false”.
It will be recalled that Lekoil Nigeria had since December 2020, consistently cried foul of an impending move by the board of Lekoil Cayman and certain shareholders determined to take over the company.
In a statement released on AIM, Lekoil Nigeria alleged that “the entry into the Savannah CFA, the Option Agreement and the Tripartite Agreement further reveals the contempt with which the board holds shareholders”.
The Lekoil Cayman board had recommended that shareholders reject the Cash Offer from Lekoil Nigeria at 1.9p per Ordinary Share on the grounds that it undervalues the Ordinary Shares.
However, Cayman is issuing new Ordinary Shares to Savannah at an approximate 75% discount to the price offered by Lekoil Nigeria to Shareholders.
Lekoil Nigeria said it is considering a number of actions to combat the current corporate breach, including a restructuring of the company and requisition of an extraordinary shareholders meeting to remove the board in its entirety.
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