Oando seeking shareholder's approval to raise N250bn equity

Oando CEO, Mr. Wale Tinubu 

Oando Nigeria Plc will like to seek shareholders approval to raise up to N250 billion via debt or equity. The company will hold the shareholders meeting on February 18, and will present that N50 billion of the amount will be offered to existing shareholders through a rights issue and that the capital raising will increase the authorized share capital from N5 billion to N7.5 billion. Please continue after cut …….

Last month the company had offered N30.75 billion in shares to help it fund the acquisition of ConocoPhillips’ assets in Nigeria. Commenting on the capital raise, the CEO, Mr. Wale Tinubu, said, “As we contemplate our world post the acquisition of Conoco Phillips (COP) Nigerian business unit, which will undoubtedly provide significant growth in size and scale in our upstream business, our mature mid-stream and downstream units continue to retain dominant positions in their market space whilst not requiring material equity infusion”. “In our bid to maximise long term shareholder value, it is necessary to optimise our balance sheet by funding our operations where necessary through equity as opposed to expensive sources of debt”. Tinubu further reiterated the company’s three pronged approach of transformation, debt reduction, and substantially increasing shareholder value.