Oando to Quit NGX After Purchase of 42.63% Minority Stake
By Dipo Olowookere
In the coming months, Oando Plc may no longer trade its shares at the Nigerian Exchange (NGX) Limited as there are plans to buy out the 42.63 per cent stake of the company’s stocks held by minority investors.
The energy firm, which is listed on the NGX and the Johannesburg Stock Exchange (JSE), has not had it smooth with a few investors as well as the regulators.
Recall that a few years ago, the organisation was sanctioned by the Securities and Exchange Commission (SEC) after it was discovered through an investigation that the company allegedly tampered with its financial statements. The issue was raised via a petition by one of its key shareholders. This led to the suspension of Oando from the exchange and a forensic audit of its books was ordered.
On March 25, 2021, about 14 shareholders of the firm with a stake of 299,257,869 shares of Oando led by Venus Construction Company Limited filed a petition and asked the Federal High Court in Lagos to direct either Ocean and Oil Development Partners Limited (OODP) or Oando to buy out their entire shareholding.
In the suit filed before the court, the petitioners listed OODP and Oando as the 1st and 2nd respondents respectively. The first respondent has a shareholding of 57.37 per cent in the second respondent.
While giving an update on the matter, Oando said the court has granted the prayers of the minority investors and has ordered that a Scheme of Arrangement for the purchase of the shares of all the minority shareholders in Oando before carried out and within 30 days, a Scheme Document should be produced and submitted to SEC and NGX “as may be necessary.”
The court also directed the company to “convene within 120 days a meeting of the holders of its fully paid ordinary shares or their duly authorised proxies/personal representatives (where it becomes impracticable for any of the holders to attend or vote at a meeting) to consider, and if thought appropriate, approve (with or without modifications) a proposed Scheme of Arrangement by OODP Nigeria for the purchase of all the minority shareholders’ shares in Oando Plc.”
In the notice filed to the stock exchange and signed by the company secretary, Ayotola Jagun; and the Head of Corporate Communications, Alero Balogun, it was stated that if the sale scales through after a court-ordered meeting, Oando shares will be delisted voluntarily on the NGX in accordance with its guidelines for delisting of securities.