PreLine Limited To Acquire N17.5m Eterna Stocks

In October 2021, Preline Limited acquired a majority stake in Eterna, nine months later, the investment company is seeking to acquire another round of shares in the oil and gas firm.

Preline Limited plans to purchase 1.3 million shares, worth N17.55 million from minority shareholders, according to Ripples Nigeria calculations, as part of their agreement for the initial 60.98% ownership stake acquired last year.

In document obtained from the capital market authority, Nigerian Exchange Limited (NGX), 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 the other shareholders of Eterna Plc other than Preline Limited.

The company offered to buy the stocks at N13.50kobo per share, which will increase shareholders‘ investment by 54%, considering the offering price is N7.3kobo above present market price of N6.2kobo.

Preline’s offer is limited to shareholders whose names appear on Eterna’s register as at June 30, 2022, and must complete and execute “the Acceptance form (included in the Mandatory Takeover bid document) and delivering same to the Registrar, Cordros Registrars Limited within the acceptance period”, the document reads.

The acceptance period falls between August 15 and September 5, 2022, although Eterna stated that the timeframe was subject to a possible extension.

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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