Oando notifies the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange Limited (JSE Limited) that its core shareholder, Ocean and Oil Development Partners Limited to acquire the shares of all minority shareholders in Oando.
The Company will subsequently be delisted from NGX and JSE and re-registered as a private company.
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.
Oando Plc has disclosed that it has received an offer from its core shareholder – Ocean and Oil Development Partners Limited (OODP) to acquire the shares of all minority shareholders in Oando.
Oando stated this in a Proposed Scheme of Arrangement notice to the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange Limited (JSE Limited) obtained by Nairametrics.
Delisting: Oando noted that following the acquisition the Company will subsequently be delisted from NGX and JSE and re-registered as a private company.
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.
Each shareholder to receive N7.07 or its equivalent in South Africa: According to the statement, 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 proposed Scheme Consideration represents a 58% 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.
Terms and conditions: Oando noted that the terms and conditions of the Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting.
“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.
What you should know: After delaying the release of its financial reports since 2020, Oando Plc on Wednesday announced financial statements for 2020 and 2021.
The Oil Company reported a turnover of N722.5 billion for the 2021 year-end, up by 51% compared to N477.1 billion reported in the 2020 Financial Year.
This was contained in the company’s 2021 unaudited financial statement released to the Nigerian Exchange Limited and obtained by Nairametrics.
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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