Nigeria court halts sale of shares in Chevron unit
By Tume Ahemba
LAGOS, Aug 7 (Reuters) - A Nigerian court has ordered the local unit of U.S. energy group Chevron Corp (CVX.N) to suspend the sale of its 60 percent equity in its fuel retailing arm, court papers obtained on Thursday showed.
The oil major had called for bids in Chevron Oil Nigeria CHEV.LG, formerly Texaco Plc, but the planned sale was challenged by local firm Zenon Petroleum and Gas Ltd, which holds a 19 percent stake in the gasoline marketer.
Zenon argues in a suit filed last week at a Federal High Court in Lagos that Chevron did not obtain approval from the Securities and Exchange Commission and minority shareholders before it received bids from at least four suitors.
The bidders include fuel marketers Oando UNIP.LG, Habit Oil, Acorn Oil and African Petroleum APET.LG, in which Zenon holds a majority stake.
"An order of interim injunction is granted restraining the respondents ... from bidding, selling, alienating, transferring, disposing and or parting with the possession of the shares," the court papers said.
Judge Lambo Akanbi adjourned the case to Sept. 30, when Chevron is expected to respond to claims by Zenon.
Zenon said it is worried its interests would be adversely affected if Chevron sells the downstream unit to an "incompetent bidder," especially after the unit reported a loss in the first quarter.
"Not only would the financial interests of the petitioner as well as the other shareholders ... continue to dwindle, but it would ultimately have a negative impact on the Nigerian economy," Zenon said.
Zenon is a big importer of refined products in Nigeria, an OPEC member which is still largely dependent on fuel imports because of its shoddy refineries.
Chevron's planned divestment from the downstream sector of Africa's top oil producer has been controversial.
Nigeria's main oil unions, which had initially indicated interest in acquiring Chevron's equity, have also expressed concern over the bidding process being handled by BNP Paribas.
Babatunde Ogun, national president of senior oil workers' union PENGASSAN, said the union was not confident that the evaluation process of potential buyers would select the best suitors for the company. (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/ ) (Editing by Randy Fabi and David Holmes)
