Company to raise up to $503 mln to fund expansion

Ben Bassey 12:56 - 31 March 2016

Nigeria's Forte Oil to raise up to $503 mln to fund expansion

"The capital raising is part of our preparations to take advantage of opportunities in the economy," Akinleye Olagbende, Forte Oil's chief compliance officer, told Reuters.

Forte Oil said it plans to raise up to 100 billion naira ($503 million) to expand its operations in the country, Africa's biggest economy, and will seek shareholder approval at its annual general meeting on April 26.

The company may raise the funds through a rights issue, bond or share offering, or global depository receipts, according to a statement issued on Thursday.

Olagbende said the company could explore opportunities in the upstream sector of the oil industry and tap into other viable businesses to bolster its bottom line.

In January, Forte Oil reported a profit before tax of 7.02 billion naira for its 2015 financial year compared with 6.01 billion naira the previous year.

($1 = 199 naira)