Nigeria’s Oando Plc has converted a $218.9 million loan to its Toronto-listed unit Oando Energy Resources (OER) to equity, to increase its stake in the subsidiary by 1.6 percent to 93.6 percent, it said on Thursday.
Oando Nigeria Plc owns Oando Energy Resources which is the vehicle it used for the COP deal. OER is listed in the Toronto Stock exchange.
Oando said the debt is part of a $1.2 billion facility it approved for its subsidiary in February to help finance the acquisition of ConocoPhillips Nigerian assets.
The oil firm secured Nigerian government approvals last month to complete the deal which it had agreed last year with ConocoPhillips but was delayed several times due to problems raising funds, oil industry and banking sources said.
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The subsidiary said it converted the debt to equity at C$1.57 per unit and issued 150 million units to its parent firm. Each unit consists of one share of Oando Energy Resources and half a warrant to buy an extra share at a price of C$2 per share.
It said the deal was approved by the Toronto Stock Exchange before the conversion. Parent company Oando, which is also listed in Johannesburg, has said it intends to close the Conoco deal this July.
It hopes the acquisition will help it make the transition from a marketer of refined petroleum products into an upstream business focused on oil and gas exploration and production.