Scramble for Oando ‘payout’ as firm announces delisting

Energy firm Oando Plc says it will cease to be a public company by delisting from the Nigeria Exchange Limited and the Johannesburg Stock Exchange.

– Key points to note

The company said its core shareholder, Ocean and Oil Development Partners Limited (OODP), which owns 57.4% of Oando, will buy up shares of the company from all minority shareholders. OODP is owned by Wale Tinubu, Oando’s chief executive and his deputy Omamofe Boyo who hold about seven to three ratio stake.

Each minority holder of Oando’s shares will receive N7.07 or the equivalent in South African Rand, a 58% premium on its share price on March 28. The company has 5.3 billion shares in the Lagos-based exchange.

Oando’s shares closed on Thursday at N5.40, 9.98% above the previous rate as investors scrambled for the pay-out.

“…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,” Oando said in a note to the Lagos exchange.

The buy is awaiting regulatory approval, Oando said. Its s

– Winning ways

Thanks for high demand for oil and gas, Oando Plc on Wednesday reported a profitable 2021 after two years of losses. It posted a revenue of N722.4 billion from N477.1 billion, and profit of N34.7 billion from a loss of N140.7 billion the previous year.

The company had not issued its financial reports for three years until last June as it was barred by the regulator SEC from holding annual general meetings as a result of its internal crisis.

“Bullish oil prices throughout the year saw us record a 105% increase in average realized oil sale price whilst a surge in militancy and sabotage across the Niger Delta resulted in a 40% decline in average hydrocarbon production compared to 2020,” Mr Tinubu said.

“Despite the challenges, a strong revenue performance, coupled with the refund of a longstanding receivable contributed to a Net Profit of N34.7 billion,” he added.