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Stakeholders, Regulators Endorse Japaul Oil N5bn Hybrid Offer    

Stakeholders and regulatory authorities in the capital market have unanimously endorsed the N5 billion hybrid offer of Japaul Oil & Maritime Services Plc. At the completion Board Meeting held last weekend in Lagos, directors of Japaul Oil & Maritime Services Plc, regulatory authorities, all parties to the issue, and shareholders gave their approval to the offer. Japaul is offering 1,007,488,188 ordinary shares of 50 kobo at N3.95 per share to the general pubic, while 291,549,045 ordinary shares of 50 kobo per share at N3.50 per share is being offered to the existing shareholders.

The offer is scheduled to open on Monday September 24 and to close on Wednesday October 31, 2007.
Speaking at the meeting, the Managing Director/CEO, Japaul Oil & Maritime Services Plc, Mr. Paul. A Jegede said the purpose of the offer is to enable the company meet its expansion and diversification plans in key areas of oil servicing and maritime services.

According to him “The estimated net proceeds of N4.650 billion after the deduction of the total cost (including underwriting commission ) representing 6.9 per cent of the total offer proceeds would be applied as follows: Acquisition & Offshore oilfield support vessels 43 per cent; Acquisition of equipment & accessories 23.66 per cent; Investment in construction materials for oil field facilities 21.5 per cent; Infrastructure & Fabrication facilities 8.6 per cent and working capital 2.23 per cent”.

He further disclosed that the right issue would be offered to the existing shareholders on the basis of one new ordinary share for every four ordinary shares held by them as at Friday July 6, 2007. The Joint Issuing Houses include: First Inland Bank Plc, and Futureview Financial Services Limited. Speaking, Managing Director/CEO, First Inland Bank Plc, Mr. Okey Nwosu said the offer is a good buy and enjoined the existing shareholders to pick up their rights. According to him, “because the offer is a good one, the Issuing Houses are underwriting the offer. We the Issuing Houses are confident in the management of Japaul. The company has track record of consistent dividend payment and bonuses. Therefore, we are confident that the offer would be over subscribed.

Similarly, Managing Director/CEO, Futureview Financial Services Limited, Mrs. Elizabeth Ebi said Japaul has thrown its doors open for people to invest and reap the returns from the oil and maritime services. According to her “The offer is very attractive with a discount of 32 per cent for the public offer while the rights offer attract a discount of 42 per cent from the current price of N6.00 per share it was pegged at by the Nigerian Stock Exchange (NSE). Also, there has been 418 per cent capital appreciation from 2005 to date. We the Issuing Houses are confident with the offer and therefore encouraged others to buy into the company”.

Shareholders at the meeting unanimously expressed their confidence in the ability of the management to deliver good returns. According to them “We have tested the company for the past few years and have seen the gain of investing therein. This is a company that has no competitor and we believe that the company will become a blue chip in no longer time.”

 

Source: vanguard