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Shareholders Approve Winding up of RAK Unity Petroleum

By Dipo Olowookere

The proposed voluntary winding up of RAK Unity Petroleum Company Plc has been approved by shareholders of the organisation.

The authorisation for the folding up of the company was given at its 18th Annual General Meeting (AGM) held on Friday, June 4, 2021, at the Shell Hall, Muson Centre, Onikan, Lagos.

A notice from the energy firm said that the shareholders were unanimous in approving the proposal put forward by the board of the company at the gathering.

It was also agreed at the meeting that Mrs Chinwe Chiwete of the law firm of EPIC Legal, which is located in Lekki Phase 1, Lagos, be appointed as liquidator for the purposes of winding up of the company.

RAK Unity Petroleum is one of the companies listed on the Alternative Securities Market (ASeM) unit of the Nigerian Exchange (NGX) Limited, formerly known as the Nigerian Stock Exchange (NSE).

When it commenced operations in Nigeria some years ago, RAK Unity Petroleum had the vision to become one of the major marketers and distributors of petroleum products purchased from the Nigerian National Petroleum Corporation (NNPC) within Nigeria and the West Africa sub-region.

RAK Unity Petroleum has 56,624,893 issued share capital, with Toparte Nigeria Limited controlling 85 per cent, while a diverse group of Nigerians hold the remaining 15 per cent.

In 2018, during its AGM, the firm was optimistic that it would remain in business and achieve its strategic objectives by driving growth inorganically through a merger or acquisition, thereby enabling the company to respond competitively to the emerging changes and trends in the business operating environment.

Two years earlier, the company commenced the implementation of a five-year business plan aimed to boost sales through the production of branded lubricants and increase profit margins by investment in the direct importation of diesel.

“There are currently ongoing plans to lease four new retail stations and refurbish the old retail stations. These plans will be executed on the back of the merger or acquisition,” the Chairman of RAK Unity Petroleum, Mr Edo-Abasi Bassey Ukpong, had said at the gathering.

He had assured that going forward, with the anticipated improvement in the Nigerian economy facilitated by increasing oil production and revenue, growth in trade and investment, a stable and transparent FX market, the firm will position itself to take advantage of opportunities and offer value to shareholders.

“To continue to grow our business, despite the tough operating environment, RAK Unity Petroleum board has begun a strategic review process of our business to evaluate all the options open to us to significantly improve our company’s performance.

“Once the board has fully evaluated these options, we intend to return to you, our shareholders, to report on our new strategic direction,” the Chairman had said at the 15th AGM.

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