Nipco Plc has launched a $16m offer for the shares it needs to increase its stakes in Mobil Oil to 70% to comply with Nigerian takeover rules, Reuters stated.

Nipco’s investment subsidiary bought 60% of Mobil Oil Nigeria from Exxon Mobil Corporation in October 2016, when the U.S. giant pulled out of downstream fuel distribution in Nigeria, Business Day informed.

Nipco, which was founded in 2001, now owns 66.7% of the fuel retailer, according to an offer document seen by Reuters.

It is offering minority shareholders $1.32 per share for the 3.23% of the capital, or 11.6m shares, it needs, the same price it paid Exxon last year and a 75% premium to 21 June’s market price of $0.75.

The offer ends on June 29.

Shares in Lagos-listed Mobil Oil have lost 10% this year, giving the company a market value of $282m. The shares rose 74% last year.

The downstream oil industry in Africa’s biggest economy is consolidating as multinational oil firms divest to focus on upstream exploration with higher margins, especially given the backdrop of lower crude prices.

Nigeria exports nearly 2mb/d but imports the bulk of its refined products because its refining capacity is unable to meet the country’s daily fuel needs of 40m liters.