Amidst ExxonMobil Asset Acquisition Controversy, Seplat’s Non-Executive Director, Kazeem Raimi, Dumps Equity Holdings

….Investors Ignore Seplat Shares As Traded Volume Decline By Over 96% In One Week

Following the controversy surrounding the share acquisition deal between Seplat Energy and ExxonMobil, a Non-Executive Director of Seplat, Kazeem Raimi, has dumped 16.139 milion ordinary shares of the company that were registered in his name.

Details of the transaction were obtained from the Nigerian Exchange Limited.

This is just as it emerged that many investors on the stock market have started ignoring the shares of the company following the scandal that is currently rocking its share purchase deal with ExxonMobil.

Seplat Energy Plc had in February this year announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28bn.

The transaction involved the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business.

According to the deal, ExxonMobil Nigeria’s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations.

The Nigerian National Petroleum Company Limited has a pre-emptive right over the asset and had last month won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy Plc.

A Judge in Abuja had granted NNPC an “order of interim injunction” on July 6, 2022, barring Exxon Mobil “from completing any divestment” in a unit that ultimately operates four licenses in Nigeria.

Despite the verdict of the Court, reports emerged on Monday that President Muhammadu Buhari had approved that the deal be consummated by Mobil and Seplat.

The Presidency’s announcement of the approval of the deal took many industry players by surprise because the transaction had initially been declined on July 5 this year by the President who is himself the Minister of Petroleum Resources.

Amidst the controversy, the President ‘s Spokesperson Garba Shehu said
that the President had taken a decision that the position of the Nigerian Upstream Petroleum Regulatory Commission be supported.

He said the earlier confusion was because “various agencies involved in (the) decision had not coordinated well among themselves.”

An analysis of the transaction statement from the NGX Ltd showed that Raimi has sold 16,139 ordinary shares worth N25m registered in his name.

The Director, Legal/Company Secretary of Seplat,Mrs. Edith Onwuchekwa, while confirming the transaction said that Seplat had already notified the Exchange about the sale of Raimi’s shares.

She said that the notification was made in accordance with Rule 12 of the Amendments to the Listing Rules of the Nigerian Exchange and Article 19 of the EU Market Abuse Regulations.

With this transaction, it therefore implies that Raimi has no stake in Seplat.

She said, “The Company was notified of the sale of 16,139 ordinary shares registered in the name of Mr. Kazeem Abiodun Raimi, a Non- Executive Director of the Company.

”Following this sale, Mr. Kazeem Abiodun Raimi holds nil ordinary shares in the Company.

“Notification and Public Disclosure of Transactions by Persons Discharging Managerial Responsibilities (PDMR) and Persons Closely Associated with them is made in accordance with Rule 12 of the Amendments to the Listing Rules of the Nigerian Exchange and Article 19 of the EU Market Abuse Regulations.”

Data from the Exchange showed that 104,085 units of Seplat shares were traded on the floor of the stock market on August 4, 2022 at a unit price of N1,430.5 per share

However, the volume of shares traded declined to 3,193 units at the same price of N1,430.5 per share as of Friday, August 12, 2022.

This means that while the volume of shares traded declined, the price per share remain constant within the eight days period.

A stockbroker who spoke to THE WHISTLER said that the drop in the volume of traded shares of the company may be connected with the controversy rocking its shares acquisition deal with ExxonMobil.

The Stockbroker said, “The shares of Seplat has not recorded much activity in the last one week because as you know, the market responds to the level of information that it receives from both the domestic and external economic environment.

“You will recall that Seplat has been involved in a controversial deal that involves the acquisition of ExxonMobil shares. Like you know, no new investor will want to take position in a company that he is not sure about the level of profitability that will come from such transaction.

“So, I think that many investor that had hitherto wanted to take up the shares of the company will hold action pending when this issue with ExxonMobil is resolved. And that is why you saw that only less that 4,000 units of shares were traded on Friday.”