Aradel Holdings Surges by 18.3% on Acquisition Notice
Integrated energy Company, Aradel Holdings Plc. gained equities investors’ attention on the Nigerian Exchange (NGX) as the oil company announced acquisition of shares in Chappal Energies.
The market reacted positively to Aradel Holdings with an increased demand for oil stock due to expectations of an improved earnings performance. Its share price rose by N85, or 18.28% to N550 at the end of trading session on Nigerian Exchange platform on Friday, from N465 at the beginning of the week.
The latest rally nudged Aradel Holdings market value to N2.389 trillion, spread over its 4.344 billion shares outstanding. The oil stock is trading at significant discount to its all-time high share price in the equities market due to sizeable selloffs from existing shareholders as a way to provide liquidity in the local bourse.
Transaction details from the Nigerian Exchange showed the shares volumes that exchange hands in the market was heavy on Friday, adding N50 to the company’s share price. The oil stock gained N35 on each shares earlier on Tuesday.
In a notice, Aradel Holdings Plc said it has reached an agreement to acquire 5.14% equity interest in Chappal Energies Mauritius Limited. The company revealed that Chappal recently announced the acquisition of Equinor Nigeria Energy Company Limited (ENEC).
Details revealed that Equinor Nigeria holds a 53.85% ownership in oil and gas lease OML 128, including the unitised 20.21% stake in the Agbami oil field, operated by Chevron.
“This acquisition will also likely enhance the company’s bottom line by contributing to its diversified revenue streams. With the volatility of the global markets, having investments in strategic sectors such as energy provides Aradel Holdings with a more balanced portfolio, insulating it from risks that affect other industries.
“The enhanced revenue base also creates the potential for reinvestment into other growth areas, driving overall value creation for shareholders”, investment analyst Gilbert Ayoola said in a review note. #Aradel Holdings Surges by 18.3% on Acquisition Notice# FG Clears N85bn, $54m ECOWAS Community Levy
