Not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America
Oando Thrills Shareholders with N20bn Right Issues
Oando PLC, Nigeria’s leading indigenous integrated energy solutions provider, today 25 January, 2010 opened the acceptance list for a Rights Issue offer of 301,694,876 Ordinary Shares of 50 kobo each at N70.00 per Share on the basis of one (1) new ordinary share for every three (3) ordinary shares of 50 kobo each held as at the close of business on Friday, 18 December, 2009 for those shareholders in Nigeria whose names appear on the Register of Members and transfer books of the company and shareholders in South Africa whose names appear on the Register of Members and transfer books as at the close of business on Friday, 29 January, 2010. The Rights Issue offering, will remain open till 19 February, 2010, is tradable on the floor of the Nigerian Stock Exchange.
The Rights Issue is expected to generate net proceeds of approximately N20.4billion which will be applied to boost the organisation’s financial structure to support its emergence as a globally competitive energy player. The fund raising was overwhelmingly endorsed by shareholders of the company in July 2009, during its Annual General Meeting (AGM).
According to Mr. Wale Tinubu, Group Chief Executive, Oando PLC, “The Rights Issue we are launching today is aimed at complementing our ongoing strategic investments in our high margin businesses as well as supporting our expansion plans, taking maximum advantage of opportunities offered in the Africa energy landscape”
“Since 2004, when we last raised capital, we have evolved from a downstream marketing business into Sub-Saharan Africa’s foremost indigenous integrated energy solutions provider, with investments spanning the entire energy value chain. Today, Oando is the leading company on the Nigerian Stock Exchange in terms of revenue.”
“With the immense support and confidence in the Group by our numerous shareholders, Oando has been able to achieve 50% year-on-year increases in profitability over the last five years despite the challenging times. We are confident of our ability to continue to deliver this exceptional result to the delight of our shareholders, through our strong presence in oil and gas. This is the attraction of our Rights Issue.
Also commenting on the offer, Mr. Femi Adeyemo, Executive Director/ Chief Financial Officer, Oando PLC said, “the proceeds from the Rights Issue would be channeled to refinancing the acquisition of upstream assets, provide operational capital for the business in the short and medium term as well as investments in the gas and power business segment”.
END
