Two prominent Directors in Caverton Helicopters and a related party have purchased a combined 69 million new shares in the firm which services Nigeria’s oil and gas industry through a Shell Corporation known as Molar Vessels Supplies Limited.
The Directors include Rotimi Makajuola MD of Caverton Helicopters Limited, Lolade Abiola Director Caverton Helicopters Limited and Yoyinsola Makanjuola, wife of Chairman Caverton offshore support Group Plc.
The shares were purchased for a total consideration of N122.8 million at an average price of N1.78 per share on 9th October, 2020, according to a filing on the Nigerian Stock Exchange (NSE).
Caverton Helicopters shares closed trading at N1.75 per share on Wednesday, down 2.78 percent. This means the insider’s that purchased at N1.78 are already down some N2 million on their trades.
They are far from bag holders though as Insider purchases are considered a bullish bet by MoneyCentral as it means smart money insiders are putting their money where their mouth is.
The business model of Helicopter’s servicing the oil sector in Nigeria is quite risky as can be seen from a recent accident.