Oando PLC Board Meets to Raise N30.7 Billion Through A Special Placement Exercise

Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced its plans to commence a Special Placement exercise to raise N30,700,594,860. Following a Completion Board Meeting held on 16th December 2013, the Company received approval to raise the full amount through the issuance of 2,046,706,324 ordinary shares of 50 Kobo each at N15.00 per share.

The Application List for the shares will open to the strategic investor, for whom the Placement Memorandum has been prepared, on Thursday, 19th December, 2013 and close on the same day, at which point the investor will apply for shares through the Issuing Houses, led by Vetiva Capital Management Limited, with FBN Capital Limited and FCMB Capital Markets Limited acting as Joint Issuing Houses.

The net proceeds of the Special Placement, estimated at a little above N29.7bn after deducting the total cost of the Placement, will be applied as follows:

  • Part-financing of Oando Energy Resources’ purchase of ConocoPhillips Nigerian Business (N19.3bn)
  • Working Capital Requirements (N10.4bn)

Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “This represents another key milestone in the achievement of our overall strategic re-focus. A significant portion of the proceeds will be used to finance the closure of our upstream assets acquisition process, a transaction we believe will transform us into a major indigenous producer of oil in Nigeria. The inherent value to our esteemed shareholders is evident, as we look to grow our asset base and income streams, whilst at the same time enlarging the portion of revenue we are able to declare as profits, through the increased margins the Upstream business offers us. We are excited about the future in store for our Company, as 2014 will witness the culmination of all our efforts over the past 12 months, as we begin to reap the dividends of a carefully planned and executed strategy”.

Source: Oando website

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