Kehinde Akinseinde-Jayeoba – Lagos
Oando Plc has notified the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange Limited (JSE Limited) that its core shareholder, Ocean and Oil Development Partners Limited, is set to acquire the shares of all minority shareholders in Oando.
Subsequently, the company would be delisted from NGX and JSE and re-register as a private company.
On Thursday, the company made the announcement in a Proposed Scheme of Arrangement notice to the NGX and JSE Limited.
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 (ZAR) for every ordinary share held by the qualified Scheme Shareholders at the effective date of the scheme.
The statement signed by Ayotola Jagun, Chief Compliance Officer & Company Secretary explained that 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 (as amended), and other applicable laws, rules, and regulations.
“The proposed Scheme Consideration represents a 58 percent premium to the last traded share price of Oando on 28 March 2023, the day prior to the date of submission of the Scheme applies to the Securities and Exchange Commission (SEC). Consequently, we confirm that Oando has applied for the SEC’s ‘No Objection’ to the Scheme.
“Please note that 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,” the statement said.
“If the conditions of the Transaction are satisfied and the same is sanctioned by the Federal High Court, the Company will be delisted from NGX and JSE and re-registered as a private company.
Further details will be communicated to the market upon receipt of requisite approvals from shareholders and regulators. Shareholders of Oando are advised to exercise caution when dealing in the shares of Oando until a further announcement is made,” the statement said.
Meanwhile, Oando announced financial statements for 2020 and 2022, where the Oil Company reported a turnover of N722.5 billion for the 2021 year-end, up by 51 percent compared to N477.1 billion reported in the 2020 Financial Year.
According to the company’s 2021 unaudited financial statement released to the Nigerian Exchange Limited, the company’s Profit after Tax stood at N34.7 billion in the 2021 year-end, compared to the Loss-after-Tax of N140.7 billion in FYE 2020.
The Profit-After-Tax for FYE 2021 was driven primarily by a higher operating profit, as well as an increase in Finance Income to N44.1 billion compared to N9.3 billion in 2020.
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