Ardova Plc has refuted media reports claiming victory by Zenon Oil over Ardova Plc in the share purchase agreement (SPA) dispute over the sale of Forte Oil.
It noted that the arbitration case was strictly between Ignite Investments & Commodities Limited and Zenon together with its affiliates for the acquisition of shares in Forte Oil Plc (now Ardova Plc).
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It would be recalled that Zenon Petroleum and Gas Limited, owned by billionaire, Mr. Femi Otedola was awarded $19.2 million by the London Court of International Arbitration (LCIA) over the share purchase agreement reached on the sale of Forte Oil Plc to Ignite Investment Limited
It was gathered that the tribunal in a judgement delivered on October 7 ruled in favour of Zenon in three out of the four claims and ordered that Ignite make the SPA agreed payments less the amount awarded for one of the claims.
However, Ardova in a corporate filing on the Nigerian Exchange Limited (NGX), maintained that it was not a party in the arbitration and does not have any dispute with Zenon. In the statement issued yesterday and signed by its secretary, Oladeinde Nelson-Cole, it stressed that the arbitral proceedings do not affect or create any liability for it.
“For the avoidance of doubt, the Company considers it important to clarify that the matter emanated from a dispute between former shareholders and a current shareholder. Ardova Plc remains a responsible organisation and will not be drawn into a media spectacle on this matter,” it said in a statement filed on the Nigerian
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It would be recalled that in June 2019, Zenon Petroleum had completed the sale of 74.02% shares of Forte Oil Plc to Ignite Investments (Ignite).
Thereafter, Ignite triggered a dispute notice via a letter dated June 17, 2020, wherein the company had alleged claims for a breach of warranty relating to the SPA executed on the 20th of December 2018.
The dispute notice had alleged that Zenon breached certain warranties under the SPA, in consequence of which, the purchaser made the relevant claims against Zenon.
Ignite filed a claim at the London Court of International Arbitration (LCIA) on December 18, 2020 after the parties which met failed to find a solution to the claims.
Zenon then filed its response to the claim and counter-claimed against Ignite.
A tribunal was then appointed by the LCIA consisting of three arbitrators namely Messrs Alain Choo Choy QC (Presiding Arbitrator), Oba Nsugbe QC SAN and Segun Osuntokun.
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