Aradel Hits 52-Week High, Gains 25% as Investors React to Acquisition
The market value of Aradel Holdings Plc increased by more than 25% as oil stock gained investors’ attention amidst a capacity expansion drive. According to data from the Nigerian Exchange, the company’s share price reached its highest value in 52 weeks in the stock market.
Data showed that Aradel traded at N790 as 4.698 million units of the company valued at N3.688 billion were traded on Friday. The oil stock opened at N631 and closed at N790.
At the close of trading session on Friday, market value of Aradel Holding Plc.’s 4.344 billion shares outstanding on Nigerian Exchange surged to N3.432 trillion – its highest in one year.
Ahead of the third quarter earnings release, investors reacted positively to its expansion drive, and this boosted its market value in the local bourse.
The market anticipates the earnings release will be a fresh catalyst that will trigger a re-rating depending on the direction and investors’ sentiments at the time.
In a disclosure, Aradel Holdings Plc announced that its wholly owned subsidiary, Aradel Energy Limited, has entered into a definitive agreement to acquire a 40% equity interest in ND Western Limited from Petrolin Trading Ltd for an undisclosed amount.
Aradel Energy Limited currently owns 41.67% of ND Western Limited, according to details from its regulatory filing on Nigerian Exchange.
The company said upon completion of this transaction, Aradel’s total shareholding in ND Western Limited will significantly increase, reinforcing its strategic position within Nigeria’s upstream oil and gas sector.
ND Western Limited is noted to hold a 45% participating interest in OML 34, a producing oil mining lease located in the Western Niger Delta.
The oil mining lease asset contains material crude oil and associated gas reserves contributing to Nigeria’s domestic energy supply and exports, according to Aradel.
In addition, ND Western Limited owns 50% of the share capital of Renaissance Africa Energy Holding Company Ltd, the parent company of Renaissance Africa Energy Company Limited, which operates the Renaissance Joint Venture.
Aradel, however, said the completion of the transaction remains subject to necessary regulatory approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Competition and Consumer Protection Commission (FCCPC) and Ministerial Consent.
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