African Petroleum Plc

[Avocado]

03May2005 - News
-----------------------
(1) The Nigerian National Petroleum Corporation's (NNPC) has notified the NSE of a planned block divestment in AP shares

(2) The NSE has placed the AP share price on technical suspension.

AP Price 03May2007: N65.85

I've not been watching AP; but those who bought during the last technical suspension (at about N43) have made lots gains. Anyone has any opinion on the latest development?

.

[Stockbear]

Avocado - Is this what you are talking about?

ThisDay
Otedola Buys AP Shares for N17bn
By Ayodele Aminu, 05.04.2007

The controversial 28.7 percent equity interest of the Nigeria National Petroleum Corporation (NNPC) in African Petroleum Plc (AP) has been sold to Zenon Petroleum owned by Mr. Femi Otedola, THISDAY can authoritatively report.

http://www.thisdayonline.com/nview.php?id=77203

[Avocado]

Stockbear: that's it! Too much politics and personal interventions. The link you posted isn't a permalink. This story needs to be preserved (I'll be hoping there's no copyright infringement...)

The controversial 28.7 percent equity interest of the Nigeria National Petroleum Corporation (NNPC) in African Petroleum Plc (AP) has been sold to Zenon Petroleum owned by Mr. Femi Otedola, THISDAY can authoritatively report.
A top official of the Nigerian Stock Exchange (NSE), who confirmed the sale said to be worth N17 billion to THISDAY last night, said the deal would be given a regulatory sealing (crossed) today at the Exchange.
Otedola paid for the shares yesterday.
Interestingly, the sale is coming barely three days after the National Council on Privatisa-tion (NCP) met, with a consensus that the controversial shares be sold by the Bureau of Public Enterprises (BPE) through a competitive bidding to Nigerians.
President Olusegun Obasanjo had stopped the sale of the affected AP shares to Barrister Jimoh Ibrahim, who is currently the Group Managing Director of NICON Group and a chain of other companies including Global Fleet Limited, and directed the BPE to take over the controversial shares and advertise them through a competitive tender.
The Presidency’s decision to halt the transaction was not unconnected with the protests that had continued to trail the transactions.
The NNPC had acquired the equity interest through its Staff Pension Fund in 2005 through a debt-swap of over N10 billion AP owed the corporation. This acquisition was subsequently gazetted and slated for sale to the Nigerian public.
Barrister Ibrahim, who was alleged to have been mopping up AP shares at the Exchange was billed to pay N17.5 billion for the shares in question.
One of the shareholders’ association chairman, Alhaji Mukbtar Mukbtar had told THISDAY that Obasanjo initially approved the sale of the NNPC shares to Ibrahim based on the Energy Minster’s (Edmund Dakoru) claim that Ibrahim had already acquired 10 per cent of AP, a development later discovered not to be totally correct.
After discovering that he was misled, Mukbtar said it was thereafter that Obasanjo directed that the deal be stopped.
Efforts to speak with the Group Public Affairs of NNPC, Dr. Levi Ajuonuma last night proved abortive as his phone was not going through.
The unilateral transfer of the NNPC equity to Otedola may have set him on collision course with Asset Management Company Limited (ASSEMAL), a related company to Afribank Nigeria Plc.
ASSEMAL had bought the 30 percent shares divested in 2005 by AP former core investor, Sadiq Petroleum Limited, following the row with the NNPC over the debt-for-equity demand, a development that conferred on ASSEMAL the status of a core investor.
Sources disclosed that earlier arrangement among the parties (AP, ASSEMAL, NNPC and the Federal Government) was that ASSEMAL would get the first right of refusal when the NNPC's shares in AP were to be disposed. Alternatively, the BPE would sell the shares to the Nigerian public.
Subsequently, Afribank's ASSEMAL, which already had some shares in the oil marketing company, bought over 120 million shares of AP Plc worth about N6 billion, which was crossed in about four deals on the Exchange.
Sadiq Petroleum had emerged the core investors in AP buy purchasing the 30 percent equity divested by the Federal Government in 2000 under its privatisation programme.
Sadiq, however, ran into murky waters when it emerged later in 2001 that AP was indebted to banks and the NNPC to the tune of N26 billion. The core investors protested the claims and accused the BPE of misleading it and concealing the facts during privatisation process.
Sadiq Petroleum owned by Chief Peter Okocha, a close associate of Vice President Atiku Abubakar, later got the Federal Government to constitute a tribunal of inquiry on the debt matter.
However, while the tribunal headed by Justice Edet Robert Nkop (rtd) submitted that the debt claims were wrong, the NNPC still maintained that the oil marketer owed it N10 billion.
In what industry observers described then as a fallout of the emerging feud between President Olusegun Obasanjo and his deputy, Okocha was forced to resign his chairmanship position in AP and Sadiq Petroleum relinquishing its shareholding in the oil marketing company.

[richestowealth]

I'm interested in AP.

[Avocado]

AP may be in trouble, again. Recall that the NNPC on 03May 2007 sold it's 28.7% equity holding in AP to Femi Otedola's Zenon Petroleum. Now:

The Federal High Court in Kaduna on Friday restrained Femi Otedola’s Zenon Petroleum from parading itself as an investor in the African Petroleum Plc. In his verdict, Justice Abdullahi Liman restrained the Nigeria Stock Exchange, the Securities and Exchange Commission, the Central Securities and Clearing Systems Limited and the AP Registrars from recognising, approving or registering any instrument of transfer of the sale of the shares, pending the determination of the motion on notice.

The case was brought to court by two AP sharholders: FEtus Akinola nd Ubimi Okienute. They alledged that the sale was illegal.

Source: The Punch

[victoropurum]

Can somebody tell us the true position of AP Shares.Is it safe to buy in view of the recent controversies trailing the stock.How can one guard against loss considering the court injunction on such divestmant by NNPC.I think the zenon group should do a little public awareness on their position.

[Bigboy]

News just coming in this morning re AP impending hybrid offer. here is the link
Guardian Newspapers

[balaliyu]

I'd advise caution on this offer. Remember - there is still a potential for the reversal of the sale of AP shares to Zenon, going by the recent FG action on the Bluestar/Refinery saga. You will want to be very sure of a Company's ownership structure - before deciding to be a part-owner.

Regards....Bala

[pumping]

AP seems to be the hottest kid on the block right now..
Wow, Something good is happening to these AP stocks... I wonder if some folks are trying to mop up the stocks or it's just the sentiment of Otedola taking over...

[pumping]

What is happening to AP now is becoming too good to be true. The fundamentals don't add up anymore. The stock will be trading up to 90 Naira by Monday and the PE will be looking above 40.

I want to believe Otedola's magic won't be felt so strongly in AP end of year results which is just round the corner in December. He has just taken over.

I'm planning to off load on Monday long term or no long term investment strategy ....I know some will laugh....but this stock is too hot to handle for me right now.... I've lost interest in the stock finally...

I feel over 50% rise in less than 9 weeks is too tempting to pass over...especially in the current bearish market.

Any contrary views in the house...?

[balaliyu]

I will sell if I were in your shoes. AP has this year witnessed a number of board-room squabbles, which eventually resulted in the emergence of Otedola as its Chairman. On the whole, Id expect the bottom line to be impacted, and the current price surge is mostly anticipatory of a better performance in the years ahead.

However, id question that logic - because until something fundamentally changes in the downstream sector of Nigeria, to ensure deregulated pricing -- the fortunes of most of the oil marketing companies will remain mostly flat.....

Cheers...B

[Taipan]

AP is N270!!! Wow, the world just went crazy!
But if only I had held on to my shares! I sold at N97 and made a decent profit. But N270 looks so much better than N97. If only I had listened to myself and held on long-term like I usually do.
This brings to mind one of the 'Technical' fundamentals: When stocks make a new all-time high, there's a tendency for them to just go on and on!

[olusolakemmy]

AP is N270!!!!!!!!!!!!!
how much will d offer price be? N250?that will be the most expensive public offer in the history of the country capital market!!!!!!!!!!!!!!!!!!!!!!!!!!!well, lets see the offer prospectus and also see the profit they have made so far since the take over by otedola.

i pray the story will not be similar to nascon

[hispy99]

Originally Posted by olusolakemmy

AP is N270!!!!!!!!!!!!!
how much will d offer price be? N250?that will be the most expensive public offer in the history of the country capital market!!!!!!!!!!!!!!!!!!!!!!!!!!!well, lets see the offer prospectus and also see the profit they have made so far since the take over by otedola.

i pray the story will not be similar to nascon

Otedola now owns 60% of AP

THISDAY ONLINE

[Dark Knight]

As for AP, i rather hold on to my money for now.I think Otedola should stop celebrating abt owning 60% holding and worry more abt a possible reversal of the NNPC sale.the House of Rep is probing the transaction.and as for the stock,i feel its overvalued.from abt 63 naira or so to over N200.i will wait and see.before u experience another nascon.and this will be worst than nascon.so if they do a public offer how much will it cost then?

[Apache]

hi guys,
This is just coming in fresh, hot and sizzling. Can you feel the heat?



There are very strong indications that Zenon Petroleum and Gas Ltd and African Petroleum Plc will soon merge to form the biggest downstream company in Nigeria.
This is coming as the shares of African Petroleum (AP) Plc yesterday emerged the highest priced stock on the floor of the Nigerian Stock Exchange, closing at a record N274.50 per share. This overtook the shares of Nestle, which had been the most priced on the exchange. Nestle closed at N265 per share.
AP’s market capitalisation has also risen dramatically from N36 billion before Mr. Femi Otedola took over the company to N216,522, 260 billion, six months after.
THISDAY was authoritatively informed yesterday that Zenon Petroleum and Gas and African Petroleum Plc are finalising merger plans.
While officials of both companies are keeping sealed lips on the rumoured merger, THISDAY checks revealed that discussions of the merger proposals were finalised and approved at a board meeting last Friday.
Efforts to reach Mr. Femi Otedola, who doubles as Chairman/CEO of AP and President of Zenon, for confirmation were, however, unsuccessful as calls to his mobile line did not go through.
If the merger is consummated, AP may become the biggest oil-marketing company in Nigeria in terms of turnover. Zenon’s annual turnover currently stands at N340 billion while AP’s projected turnover for this year is put at N260 billion. A possible N600 billion annual turnover will see the company emerge with the highest turnover in Nigeria.
It is, however, not certain which name the new company will adopt. THISDAY learnt last night that it would either be Zenon or African Petroleum.
AP’s shares have consistently experienced full 5 per cent bid almost on a daily basis on the trading floor for the past three months. The company shares have appreciated by well over 600 per cent over the same period.
However, as at May 4th 2007 when Zenon acquired 215, 227, 778 units of AP shares – making up 26 per cent of the total 27.5 per cent of NNPC stake – the market value of the shares stood at N65.85.
It was gathered that Otedola has since increased his personal holdings, which initially stood at 29.3 per cent, to more than 34 per cent, bringing his total share holding in AP to well over 60 per cent, all acquired on the secondary market.
While many ascribe this to the Otedola factor, the scramble for AP shares may not be unconnected with the company’s rumoured intention to pay between N8 and N10 dividend per share the year ending in December 2007. That will represent over 800 per cent increase from the N1 dividend that was paid shareholders last year.
It is also being speculated in the market that the expected merger of Zenon and AP might have fuelled price appreciation.
Some market operators believe that since Otedola acquired AP, it was just a matter of time before a merger was announced.
Since Otedola took over as Chairman/CEO of AP, the market value of AP stock has increased, a development some market analysts have attributed to renewed confidence in the company because of the success of Zenon in its eight years of operation. On taking over AP, he had appointed Mr. Tunde Falasinnu, from Total Nigeria Plc, as COO of the company in what was seen then as a major “coup” in the industry.
Otedola had in July 2007 paid nearly N17 billion to acquire NNPC’s stake in AP. However, controversy had trailed the acquisition as some shareholders went to a Federal High Court in Kaduna in an attempt to reverse the sale. The case was however dismissed by the court.
Sadiq Petroleum, which was the initial core investor before divesting, also petitioned the House of Representatives which led to a public hearing. At the public hearing, it was revealed by the DG of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyuike that while Sadiq Petroleum might have been forced to sell its shares for political reasons, it made a significant profit of N4 billion, having acquired the shares for N2 billion and sold them for N6 billion.
Zenon Petroleum and Gas is wholly owned by Femi Otedola and was established eight years ago. It is an indigenous company engaged in marketing and distribution of petroleum products with diesel and kerosene being its area of strength. It currently controls about a major share of the diesel market in Nigeria. - Thisday