Preline Limited to acquire N17.5m Eterna stocks - TrendyNewsReporters Preline Limited to acquire N17.5m Eterna stocks - TrendyNewsReporters

Preline Limited to acquire N17.5m Eterna stocks

by Ebor Cletus Ralph Jr

Preline Limited bought a majority position in Eterna in October 2021; nine months later, the investment group is looking to buy more shares of the oil and gas company.

According to calculations by Ripples Nigeria, Preline Limited intends to buy 1.3 million shares from minority shareholders, totaling N17.55 million, as part of their agreement for the initial 60.98 percent ownership interest obtained last year.

Eterna explained that the offer was made to comply with Part XII, Section 131(1)(a) of the ISA, and Rule 445 of the Securities and Exchange Commission’s Rules & Regulations, which requires Preline to make a mandatory takeover bid to all other shareholders of Eterna Plc besides Preline Limited, in a document obtained from the capital market authority, Nigerian Exchange Limited (NGX).

Assuming that the company’s offer price of N13.50kobo per share, which is N7.3kobo higher than the stock’s current market price of N6.2kobo, is accepted, Ripples Nigeria estimates that this will enhance shareholders’ investment by 54 percent.

In order to accept Preline’s offer, shareholders must complete and sign “the Acceptance form (included in the Mandatory Takeover bid document) and deliver same to the Registrar, Cordros Registrars Limited within the acceptance period” and have their names appear on Eterna’s register as of June 30, 2022.


The deadline for submissions is August 15, 2022, through September 5, 2022, though Eterna noted that the deadline could be extended.

Meanwhile, the acquisition will increase Preline’s ownership stake in Eterna to 61.08%, with a total of 796,269,774 shares held, and pushes Eterna closer to becoming a private company. Its current investment in the firm is N4.93 billion.



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