The takeover deal involving Savannah Energy Investments Limited and Lekoil Cayman Limited has suffered a major setback as the Grand Court of the Cayman Islands has granted an injunction to stop proceedings on the convertible facility agreement (option agreement and the tripartite) announced on February 28, 2022.
Upon hint of the London-listed oil firm’s move to sell all her stakes, the Chief Executive Officer of Lekoil Nigeria, Olalekan Akinyanmi, had sought an injunction halting the takeover bid with Savannah Energy, an action that would have been massively dilutive for Lekoil Limited’s shareholders.
The Board of Lekoil Nigeria confirms that the Grand Court has granted the interim injunction which effectively prohibits Lekoil Limited from allotting any shares pursuant to the Agreement with Savannah, among others. Lekoil Limited has liberty to bring the matter back before the Court on 24 hours’ notice to Akinyanmi.
Akinyanmi went before the court to seek injunction regarding the underlisted:
That until further order of the Court, Lekoil Limited (the “Company”) be restrained from issuing or allotting any shares in the Company pursuant to:
A convertible facility agreement entered into by the Company on 2 September 2021;
A convertible facility and option agreement entered into between the Company and Savannah Energy Investments Limited on 28 February 2022; and
A tripartite agreement entered into between the Company and Savannah Energy Investments Limited and others on 28 February 2022.
This development signals interesting times ahead for concerned parties and keen industry observers as the battle to save shareholders’ investments and restore confidence lingers.
