Lekoil Limited shareholders back agreement with Savannah Energy

Shareholders of Lekoil Limited, the oil and gas exploration and production company with a focus on Nigeria and West Africa, have overwhelming approved the company’s option agreement entered into with Savannah Energy Investments.

Out of the shareholders with a combined share capital of 437,462,857 ordinary shares, which represents 58 per cent of the issued share capital of the company, 82 per cent amounting to 356,596,324 ordinary shares support the proposal.

The second resolution, which was to authorise the Directors to issue fully paid ordinary shares up to an aggregate number of 151,755,547 was also endorsed by 70 per cent of the ordinary shares, or 129,814,298 ordinary shares.

By the statutory regulations, both ordinary resolutions required a simple majority of votes cast to pass.

Lekoil Limited’s Interim Executive Chairman, Anthony Hawkins reacted to the shareholders’ decision: ‘The company would like to thank its shareholders for approving both resolutions at the EGM.

‘In particular, the vote in favour of entry into the Option Agreement was overwhelmingly endorsed by our shareholders (other than those associated with Lekoil Nigeria) and is a clear validation of the transactions with Savannah Energy’.

Hawkins commented on the dispute between Lekoil Limited and its parent company, Lekoil Cayman, on one hand, and Lekoil Nigeria: ‘The voting also puts into context the recent actions of Mr (Olalekan) Akinyanmi and Lekoil Nigeria as they attempt to stifle the smooth running of the company.

‘The company will continue with the work necessary to have the company’s shares unsuspended and continue with the steps necessary to recover its investments in the Lekoil Group’.

The dispute involving the parties have become protracted with each side claiming to be standing on firm legal grounds. On Thursday, Lekoil Nigeria Limited, for instance, announced to its shareholders that its Founder and Chief Executive Officer, Akinyanmi has filed a petition against Lekoil Cayman at the Grand Court of Cayman Island Court to request its just and equitable winding up to avert value loss by shareholders of the Lekoil Nigeria.

Chairman of Lekoil Nigeria Limited, Mrs Aisha Muhammed-Oyebode said the petition is seeking to wind up Lekoil Limited, under which name Lekoil Cayman operates in Nigeria.