12 May 2023 Posted by: Media News

Source: The Cable

AbdulWasiu Sowami, chairman of Ardova Plc, has completed the acquisition of the oil company from Femi Otedola, Nigeria’s billionaire business mogul.

The chairman has also settled a $19 million arbitration ruled in favour of the billionaire, ThisDay reports.

In 2020, Sowami, through his investment portfolio, Ignite Investments and Commercial Limited (IICL, commenced the process for the acquisition of the company.

According to a report obtained by ThisDay, Sowami instituted arbitration proceedings seeking to avoid the payment of the balance of $20 million due to Otedola following his acquisition of Ardova.

However, the arbitration ruled in favour of Otedola “with the award of $19 million against Sowami”.

“The good news is that following several payments in installments, Mr. Wasiu has completed the payment of the arbitrary award, net of certain deductions ahead of the June 2023 deadline,” the report reads.

“The total payment of the balance is in the sum of $19 million approximately, thus completing the acquisition.”

Meanwhile, in its unaudited financial report for the full year ended December 2022, the company had declared a net loss of N7.61 billion, as against N3.85 billion loss reported in 2021 financial year, amid hike in cost of sales and finance costs.

Ardova also reported a net finance cost of N4.6 billion — up by 35.7 percent.

Also, the cost of sales hit N226.8 billion in 2022, a growth of 18.4 percent from N191.59 billion reported in 2021.