businessman Femi Otedola made $398million
between March 3 to June 2.
#Ojigbijigbijigbithings. Hehe. See their report
below
Nigerian energy mogul Femi Otedola has
become at least $398 million richer
between March 3 and June 2 as shares of
Forte Oil PLC, a Nigerian Stock Exchange-
listed energy distributor, surged 167% in
that period.
Forte Oil PLC is primarily engaged in the
distribution of petroleum products such as
diesel, aviation fuel and Premium Motor
Spirit (PMS). The company has over 500
company-owned, dealer-assisted and
dealer-developed gas stations spread across
the country, oil storage depots in Lagos and
Rivers states, a Power plant and a Joint User
Hydrant Installation facility in Lagos. The
company also sells its own range of
automobile lubricants.
On March 3, the company's stock was trading at
N88.4 ($0.55), and at the close of trading today
(Monday), its share price was N235.79 ($1.46).
According to Akinbamidele Akintola, Vice
President, Africa equity sales at Renaissance
Capital, the recent unprecedented demand and
surge in Forte Oil's shares may not be
unconnected to the company's recent inclusion
in the Morgan Stanley MS +0.13% Capital
International (MSCI ) Frontier Market 100 Index.
Listing in such indexes usually attracts interest
from global investors who track these
companies.
Otedola became the largest shareholder in Forte
Oil (formerly called African Petroleum) in 2007
when he acquired a 28.7% stake in the company
from the government-owned oil company, the
Nigerian National Petroleum Corporation (NNPC)
for $120 million. He subsequently appointed
himself as chairman of the company. Otedola,
47, has gobbled up additional shares over the
years and now owns more than 40% of the $1.5
billion (Market Capitalization) company.
According to information available from registrar
sources, he currently owns 436,809,537 shares
valued at N103 billion ($635 million). He
pocketed at least $11 million in dividends from
profits made by his company in February as
Forte Oil paid shareholders a dividend of N4
($0.0023) per ordinary share from its 2013
profits. A representative for Femi Otedola could
not be reached for comment at press time.
Source: Forbes
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