August 15, (THEWILL) –Â When businessman and investor, Femi Otedola and his company, Zenon Petroleum and Gas company, reached an agreement with AbdulWasiu Sowami and his company, Prudent Energy, for the purchase of 74 per cent share capital in Forte Oil Plc in 2019, little did Otedola know that four years after, he would have no choice but to battle Sowami for full payment of the cash equivalent of the shares.
Otedola sold the shares of Forte oil for $200 million at the time. The deal was structured in such a way that the Ogun State-born Sowami would pay the money in tranches, instead of paying it in full. With that landmark transaction, Sowami became the owner of Forte Oil, which was later renamed Ardova.
However, Sowami who had been paying, stopped payment this year. The balance of the payment due to Otedola currently stands at $6 million and despite the debt and not yet completing payment, Sowami went ahead to buy a competitor, Enyo retail and supply with about 95 retail stations all over the country.
With the current state of the economy, not wanting to lose out of the bidding process for the five National Integrated Power Projects (his energy company, Amperion Power Distribution Company, the parent company of the Gerugu Power Station, is among the 16 energy companies listed by the Public Bureau of Public Enterprises qualified for the bidding) and also not wanting to risk the sale of his First Bank shares, in a bid to retain dominance in the banking sector, there is no denying that Otedola is in dire need of money.
Ironically, one of Sowami’s companies, Ardova PLC is also among the 16 lucky winners that will bid for the power assets. Tired of serving demand letters to Sowami to pay up his debt, which is long overdue, Otedola approached the court over Sowami’s inability to pay his debt. Whether Otedola will have an upper hand in the unfolding drama remains to be seen. Ardova Plc itself, formerly Forte Oil, has not been without its own fair share of challenges.
Last month the Nigerian Exchange Limited (NGX) lifted a suspension placed on trading in the shares of the company for failing to file their Audited Financial Statements for the year ended 31 December 2021. But after the company filed its Audited Financial Statements and Unaudited Financial Statements for the quarter ended 31 March 2022, in compliance with all applicable rules of NGX, the trading house lifted the suspension.
Also, the company suffered some losses from its subsidiaries, Axles and Cartage, and the newly acquired Enyo Retail and Supply Limited, leading to a group net loss position of N3.8 billion.
Unlike Femi who is well known publicly, Sowami likes to operate in the background and abhors the spotlight. Himself and Otedola are alike when it comes to philanthropy. Sowami established the Abdul-Lateef & Sanni Foundation to build schools and provide scholarships to indigent students. He holds an M.Sc. in Corporate Governance from Leeds Beckett University, England and a B.Sc. in Sociology from the University of Maiduguri. He is a member of the Institute of Directors, Nigeria.
Ivory Ukonu is a versatile journalist with many years of experience, with entertainment and society reporting as her area of core competence.
