(Ecofin Agency) - Nipco Plc has said that it is offering $16 million for the shares it needs to increase its stake in Mobil Oil to 70% (against the current 66.7%).

The company on Wednesday stated that it wishes to buy a 3.23% stake in Mobil from minority shareholders at a price of N417.12 per share and a 75% premium to Wednesday’s market price of N238.36.The offer expires on June 29, 2017.

Let’s recall that, Nipco Plc in October 2016, bought 60% of Mobil Oil Nigeria from Exxon Mobil Corp.

Founded in 1951, Mobil oil operates over 200 petrol stations in Nigeria and has three plants that manufacture lubes, petroleum jelly, and insecticides in Lagos. After soaring 74% in 2016, the shares’ value dropped 10% this year, giving the company a market value of $282million.

Anita Fatunji