Lagos, Nigeria – 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 opened its Rights Issue to raise N48.8 Billion through the issuance of 2,217,265,184 ordinary shares of 50 Kobo at N22.00 per share. On the basis of four (4) new ordinary shares for every ordinary share of 50 Kobo each held as at the close of business on Friday, 25 July 2014 for those shareholders whose names appear on the Register of Members and transfer books of the Company which are maintained in Nigeria and shareholders whose names appear on the Register of Members and transfer books of the Company which are maintained in South Africa as at the close of business on the Friday prior to the Issue opening date, 3 December 2014.
The Rights Issue exercise will open on Wednesday 3 December, 2014 on both the Nigerian Securities Exchange and the JSE Limited, and close on Wednesday, 14 January, 2015 on both exchanges. Vetiva Capital Management Limited is the Lead Issuing House, with FBN Capital Limited, FCMB Capital Markets Limited, Marina Securities, Stanbic IBTC Capital and Zenith Capital acting as Joint Issuing Houses.
The proceeds from the Rights issue will be used for the following:
- Deleveraging of balance sheet via repayment of existing financial debt obligations
- Investment in working capital to replenish working capital lines utilized in the financing of the COP Acquisition.
Commenting Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “We are pleased with the execution of our current strategy of GDP: Growth-Deleverage- Profitability: having experienced tremendous Growth in the Upstream business in terms of production a 1000% increase (current production of 50kboe/day), reserves and resources a 1500% increase (780mmboe). Deleverage; by a portfolio review and the ensuing divestment of less profitable assets and operations, for example the recent lucrative sale of the South Eastern Pipeline franchise for $250million. Profitability; in our continual quest for higher margin and superior rates of return on investments in the Upstream, rather than scale in the Downstream. We have launched our Rights Issue towards re-vitalizing our balance sheet in preparation for the landscape of growth opportunities in 2015, to ensure we maximize value and cash returns to our shareholders”
Ends.
