By Udeme Ekwere

Union Venture & Petroleum Plc, a company quoted on the second-tier segment of the Nigerian Stock Exchange, has received approval to take in a core investor.

According to a statement from UVPP, the approval, given by the Securities and Exchange Commission, allows Gland Energy Services Limited to invest N36.4bn in the company.

The statement said that GESL, a Nigerian firm operating in the oil and gas sector, had decided to invest in the company seeing its potential as a local company that had good prospects for future growth.

UVPP had been recording losses over the years and was named as one of the companies that the NSE had threatened to delist in 2010 for being dormant.

However, with the 70 per cent acquisition by GESL through the placing of 70 million shares of 50 kobo each at 52 kobo per share, UVPP seems to be on the route to profitability.

The Managing Director/Chief Executive Officer, UVPP, Mr. Frank Anapusim, according to the statement, said the acquisition had given life to the company.

According to him, the funds will bail out the company and also enable it to improve its working capital, develop its retail distribution network as well as acquire new technology.

“We have been on this for a very long time and today, the dream has come true. The coming in of GESL has brought life to UVPP and all stakeholders stand to realise many benefits going forward,” he said.

He added that GESL had the financial and technical expertise needed to revive UVPP.

The Managing Director, GESL, Mr. Wande Akinpelu, said the vision of the core investor was to unlock the intrinsic value in UVPP and set it on the path of profitability in the very near future.

He noted that both companies had some synergies that would be tapped for the benefit of all stakeholders.

“We are going to identity the right type of capital and best brains going forward in our mission to resuscitate the company. UVPP is very strong in the retail side of the market. Our objective is to take the company from regional outlook it has today to a more national outlook. So, we will open outlets all over the country,” he said.

Representing Afribank Capital Market, the packagers of the deal, Mr. Mamman Bukar, noted that core investors could take advantage and invest in some of the companies already listed on the NSE, adding that the Afribank Capital Market was ready to assist such an investor in achieving this.

 

Source: Punch