Lekoil shares fall 26% on potential sanctions over Metallon's stake purchase (updated)

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07/01/2021 15:08

(Adds Metallon's no comment, details on EGM)
    JOHANNESBURG/LAGOS, Jan 7 (Reuters) - Lekoil  LEK.L  shares
fell 26% on Thursday after the Nigeria-focused oil and gas
company flagged the possibility of sanctions from Nigeria's
petroleum ministry over a stake purchase by Metallon, which is
now Lekoil's top investor. 
    Lekoil said it received a letter from the minister of
petroleum saying Metallon's stake build - which began in March
2020 and resulted in the Zimbabwe-focused gold miner holding
15.1% of Lekoil - must be compliant with ministerial guidelines.
    "In the event that Metallon's acquisition... has not
complied with Nigerian legislation and in the absence of any
suitable remedial action, sanctions could be imposed directly on
the company by the Ministry of Petroleum Resources," Lekoil said
in a statement. 
    Metallon declined to comment on the statement. 
    On Friday, Lekoil shareholders will vote during an
extraordinary general meeting on a Metallon request to appoint
three board members. It said the appointments are an effort to
improve the company's corporate governance. 
    Lekoil founder and chief executive, Lekan Akinyanmi, asked
shareholders to reject the request, which he said could be an
avenue for Metallon to gain control of the company. Metallon has
said it has no plans to take control of Lekoil. 

 (Reporting by Helen Reid in Johannesburg and Libby George in
Lagos; Editing by Jan Harvey, Kirsten Donovan)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))