Oando To Acquire Shares Of Minority Shareholders

Oando Plc said, it has received an offer from its core shareholder, Ocean and Oil Development Partners Limited to acquire the shares of all minority shareholders in Oando.

The company will subsequently be delisted from Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange (JSE) and re-registered as a private company.

The company, in a statement signed by its chief compliance officer & company secretary, Ayotola Jagun said: “it is intended that the transaction will be executed through a Scheme of Arrangement in accordance with Section 715 of the Companies and Allied Matters Act, 2020 and other applicable laws, rules, and regulations.

“Under the scheme, each scheme shareholder shall be entitled to receive the sum of N7.07 in cash or its equivalent in South African Rand for every ordinary share held by the qualified Scheme Shareholders at the effective date of the scheme.”

It stated that, the proposed scheme consideration represents a 58 per cent premium to the last traded share price of Oando on March 28, 2023, being the day prior to the date of submission of the scheme application to the Securities and Exchange Commission (SEC).

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The statement added that “consequently, we confirm that Oando has applied for the SEC’s ‘No Objection’ to the Scheme. Also, the effectiveness of the scheme is subject to the approval of the shareholders of Oando at the Court-Ordered Meeting of the Company, as well as the sanction of the Federal High Court.”

Meanwhile, Oando, in its financial results for the year ended December 2021, declared a net profit of N34.7 billion from N140.7 billion loss in 2020 financial year.

Despite the prevailing challenges at the time, Oando was still able to record a 51 per cent increase in turnover to N722.5 billion in 2021 compared to N477.1 billion in 2020.

Revenue for the period was positively impacted by high product prices, with realized average crude oil price increasing by 105 per cent ($70.12 per barrel compared to $34.21 per barrel in 2020), natural gas by 40 per cent ($9.96/boe compared to $7.13/boe in 2020), and NGL by 27 per cent ($6.98/boe compared to $5.48/boe in 2020).

Oando Plc is a Nigerian multinational energy company operating in the upstream, midstream and downstream.