Petroleum Min. lauds GOIL over strategic role in downstream sector
Ghana Oil Company Limited, GOIL, has launched its Rights Issue with a commendation from the Petroleum Minister, Armah Kofi Buah for its strategic role in the Oil industry.
GOIL is raising 155 million Ghana Cedis through a Renounceable Rights Issue, which begun on May 3, 2016, and expected to end on the 18th of May, 2016.
GOIL hopes to use the proceeds to strengthen the company’s balance sheets, expand current retail outlets, acquire a bitumen plant as well as expand facilities at the Takoradi Harbour.
Petroleum Minister Armah Kofi Buah, who launched the Rights issue, commended GOIL for bringing vibrancy into the sector affirming GOIL’s strategic role since the deregulation of the downstream sector.
He was particularly happy GOIL’s stock value had grown over 800 in the last few years after listing on the Ghana Stock Exchange.
Finance Minister, Seth Tekper said government would continue to play its role in strengthening State-Owned Enterprises and hinted that it was possible to Issue Corporate Bonds to fund capital projects. He commended GOIL for sound management practices.
The Director-General of the Securities and Exchange Commission, Dr. Adu Anane Antwi, congratulated GOIL on the launch adding that such Right Issue is critical to the development of the capital market. He encouraged GOIL to always embrace good corporate governance practices.
The Managing Director of GOIL, Mr. Patrick Akorli, appealed to shareholders to believe in the company, indicating GOIL has achieved positive results in spite of stiff competition.
GOIL currently controls 20 percent of the downstream retail market and has expanded its retail sector to over 256 retail stations.
He confirmed GOIL would use the money raised to continue several projects which will put the company on a positive footing.
GOIL is issuing approximately 139,639,640 shares at a price of GH¢1.24 per share and in a ratio of 0.5536 new shares for every one held by a qualifying shareholder.
The Transaction Advisors are Belstar Capital Limited.