RCS - Lekoil Nigeria Ltd - Offer To Purchase Mayfair Loan

Blue EnergyAnnouncement

01/04/2022 08:15

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RNS Number : 8744G  Lekoil Nigeria Limited  01 April 2022

 

01 April 2022

 

Lekoil Nigeria Limited

("Lekoil Nigeria")

 

OFFER TO PURCHASE THE MAYFAIR LOAN

 

 

LAGOS, Nigeria. 01 April 2022

 

Lekoil Nigeria Limited, the oil and gas exploration and production company
with a focus on Nigeria and West Africa, in which Lekoil Limited (AIM: LEK)
(the "Company") has a 40% equity interest, hereby notifies shareholders of
Lekoil Limited that it has made an offer to the Board of Directors of the
Company to acquire the inter-company loan of US$110 million made by the
Company to group company, Mayfair Assets & Trust Limited (the "Mayfair
Loan"), for:

 

(a)  an initial purchase price of US$1.5m, representing 50% more than that
which the Board of Directors of the Company has agreed to sell the Mayfair
Loan to Savannah Energy Investments Limited ("Savannah") pursuant to the
Option Agreement; and

 

(b)  a deferred payment of US$110 million, being more than twice the deferred
consideration proposed to be paid by Savannah pursuant to the Option
Agreement.

 

The offer from Lekoil Nigeria will provide the Company with the necessary
working capital that it purports to require whilst averting the consummation
of the value destructive Option Agreement and the likely loss of OPL 310 to
Savannah. Whereas the acquisition of the Mayfair Loan by Lekoil Nigeria will
not only prevent the loss of OPL 310, it will have neutral effect on the value
of your shares.

 

In light of the offer by Lekoil Nigeria to acquire the Mayfair Loan, there
remains no commercial reason for the Company to consummate the Option
Agreement. Lekoil Nigeria urges the Board of Directors of the Company to act
in the best interest of shareholders and call off the extraordinary general
meeting scheduled for Thursday 7 April 2022. Lekoil Nigeria believes that any
contractual issues arising from the cancellation of the extraordinary general
meeting can be managed with limited impact on the Company.

 

In the event that the Board of Directors of the Company is not willing to act
in the best interest of shareholders of the Company, Lekoil Nigeria urges
shareholders to vote against the approval of the Option Agreement at the
extraordinary general meeting scheduled for Thursday 7 April 2022.

 

The offer letter sent to the Board of Directors of the Company can be accessed
by shareholders clicking the links below.

 

https://tinyurl.com/lekoilnigeriaoffer
(https://tinyurl.com/lekoilnigeriaoffer) or
https://lekoil.com/corporate-documents
(https://lekoil.com/corporate-documents)

 

http://www.rns-pdf.londonstockexchange.com/rns/8744G_1-2022-4-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8744G_1-2022-4-1.pdf)

 

 

 

For further information, please contact:

 

 LEKOIL Nigeria Limited

 Hamilton Esi, Corporate Communications   +234 810 642 1047
 Damilola Isafiade, Investor Relations    +234 818 007 5493

 

 Hudson Sandler (Financial PR)

 Mark Garraway                  +44 (0)7771 860938

 

 

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