After Losing N7.6bn In 2022, Ardova Plc To Delist From NGX

Ardova Plc which declared N7.6bn loss in the full year of 2022 is proposing to delist from the capital market, Nigerian Exchange Ltd.

The decision is linked to Ignite Investments and Commodities Limited’s plans to buy all shares owned by the shareholders of the company.

Ignite Investment is willing to buyoff the shares belonging to other shareholders at an offer price of N17.38.

This represents a premium of 22.44 per cent and 24.38 per cent to the 30-day and 60-day volume weighted average share price of N14.19 and N13.97 respectively as of November 30 last year, Ardova said on Tuesday.

Ardova said, “Ignite Investments & Commodities Limited has approached the Board of Directors of the Company with an intention to acquire the shares held by other shareholders of the Company at an offer price of N17.38 per share, and subsequently delist the Company from NGX (the “Proposed Transaction”).”

Prudent Energy & Services through its entity, Ignite Investments and Commodities Limited owns 74.06 per cent or 970,666,694 shares out of the 1,310,629,268 issued shares of Ardova Petroleum formerly Forte Oil.

Investigation on the accounts of Ardova reveals that the company posted N7.606bn loss in 2022 which is about double the N3.84bn loss declared in 2021.

The company also has negative retained earnings of N1.23bn.

“Negative retained earnings are a sign of poor financial health as it means that a company has experienced losses in the previous year, specifically, a net income loss,” Investopedia suggests.

Ardova has however confirmed that the Board of Directors has approved Ignite Investment’s acquisition of the remaining 25.94 per cent (339,963,574) shares.

THE WHISTLER investigation reveals that the remaining share is valued N6.255bn as of December 31, 2022.

As of the time of filing this report, Ardova shares have plunged by 4.2 per cent of their value from N17.65 held on Monday to N16.8.

Ardova said, “It is intended that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.

“The Proposed Transaction is subject to the review and clearance of the Securities and Exchange Commission as well as the approval of the shareholders of the Company.

“The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court Ordered Meeting.

“If the conditions of the Proposed Transaction are satisfied and the same is sanctioned by the Federal High Court, the Company would be delisted from NGX.”