The boardroom crisis rocking Oando Plc may be drawing to a close as one of the aggrieved shareholders Dahiru Mangal and the company have signed a peace accord. The company revealed this in a press statement sent to the Nigerian Stock Exchange.
Details of the Peace Accord
The Peace Accord between both parties appears to have been brokered by the Emir of Kano Sanusi Lamido Sanusi on the 7th of January 2018.
As part of the settlement, Dahiru Mangal has formally written to Oando informing the company of his significant shareholding, and withdrawing his petition.
“Following the clarification I have received from Oando’s management team, I have withdrawn my petition to the SEC. I invested in Oando because I could see its potential. It is therefore with excitement that I concur to this Peace Accord signifying the renewal of our relationship; one that gives me more insight into the Company’s operations and aspirations and involves more dialogue.
Oando Plc in response, has acknowledged his significant shareholding and promised him representation on its board, subject to the approval of the Securities and Exchange Commission (SEC).
Not yet Uhuru
While Mangal, may have withdrawn his petition, Gabriel Volpi is yet to do likewise. If the matters pertaining to the petition have been addressed, what then happens to the forensic audit that was to be conducted by the Securities and Exchange Commission (SEC) ? SEC had based its decision to conduct the audit on breaches of its governance code.
If the petition in essence, was merely in a bid to secure adequate representation on the board, should Mangal not be sanctioned for raising spurious allegations?
The matter is also pending before the House of Representatives, which had asked aggrieved shareholders to send memoranda.
Is the SEC the loser ?
The Securities and Exchange Commission seems to have been left with proverbial egg on its face. Will the regulator continue with the investigation, despite the rapproachment between both parties ? Was the whole exercise then a waste of time ?
Oando Plc, had claimed that Dahiru Mangal had contravened certain provisions of the SEC Act, by not disclosing his shareholding. Will the SEC, decide to prosecute Mangal who will have a representative on the board
What happens to retail investors ?
While Dahiru Mangal gets representation on the board, Wale Tinubu and senior management of the firm will be allowed to continue their tenure unhindered. Retail investors however, got the sort end of the deal as the stock has been placed on technical suspension since October last year, in the midst of a market rally.
Does this then mean majority shareholders locked in board room tussles, can come up with allegations in a bid to gain influence and control? Has this set a precedence that will be repeated by major shareholders going forward? Did Dahiru Mangal’s petition have merit in the first place ?
What happens to Gwarzo vs Adeosun ?
Director General of the SEC when the petition was submitted, Munir Gwarzo had alleged that Minister of Finance, Kemi Adeosun had asked him to step down the investigation, and instead level a fine on the company. Adeosun in her response, had accused Gwarzo of attempting to blackmail her.
Gwarzo has since been suspended pending conclusion of investigations pertaining to a petition against him.
Here is a copy of the press release.
