Lekoil Nigeria has reacted to the lifting of an injunction initially granted by The Grand Court of the Cayman Islands (“the Court”) against Lekoil Cayman Limited, following an application filed by Lekan Akinyanmi, the Chief Executive Officer, Lekoil Nigeria Limited.
The injunction was for a halt to all proceedings into a convertible facility agreement with Savannah Energy, the deal (option agreement and the tripartite) entered into by Lekoil Cayman and Savannah Energy Investments Limited.
Lekoil Nigeria Limited has stated that “the Board of Lekoil Nigeria respects the Court’s decision, primarily on the basis that to not lift the injunction would be to risk the insolvency of the Lekoil Limited as a result of the liquidated damages willingly incurred by the Board of Lekoil Limited”.
However, Lekoil Nigeria believes that the basis of the restructuring put forward by Lekoil Limited, as set out in the announcement of 28 February 2022, was substantially dilutive and under Lekoil Limited’s articles, should have been put to shareholders before being implemented. Industry experts question the validity and legality of Lekoil – Savannah transaction and see Lekoil’s actions as a disdain for courts and shareholders.
She also argues that the Lekoil Cayman/Savannah agreement effectively “gifted” Savannah Energy a material interest in the business, essentially enabling Savannah Energy to “acquire” her stake at below market rate and substantially lower than the value of the offers previously tabled by Lekoil Nigeria to all shareholders.
Lekoil Nigeria believes that the questionable conduct of the Lekoil Cayman Board and the improper share allotment that took place on March 11, 2022, is still a sore point that needs to be thoroughly examined for the greater good of the shareholders.
While awaiting the court’s determination of the legality or otherwise of the actions undertaken by the Board of Lekoil Limited and the company’s resulting shareholding structure, the Board of Lekoil Nigeria has taken the decision to suspend her offers to shareholders of Lekoil Limited. You may recall that the offers announced on December 15, 2021, comprised:
• An offer to acquire Ordinary Shares for cash at GBP0.019, being a premium of 100% to the last trading price of the Ordinary Shares prior to suspension from AIM on 1 October 2021 (on the basis of there being no dilution from the Company following the date of this Offer Document)
• An offer, subject to certain conditions, to acquire Ordinary Shares in consideration for Lekoil Nigeria B Shares.
Resolute on securing shareholders’ investment and restoring confidence, the Board of Lekoil Nigeria will officially address the shareholders who still keep faith in the Lekoil lofty dream despite the litany of distractions caused by unfriendly interests.