Oando Plc says it plans to raise N30.7bn through a special placement exercise.
The energy company, which is listed on the Nigerian Stock Exchange and the Johannesburg Stock Exchange, said this in a statement made available to our correspondent on Tuesday.
According to the statement, the company got the approval to proceed with the special placement following a completion board meeting held on Monday.
To raise the amount, the company plans to issue 2.046 billion ordinary shares of 50 Kobo each at N15.00 per share.
Oando explained that the net proceeds of the special placement, estimated at N29.730bn, would be used to partly finance the purchase of ConocoPhilips Nigerian business and for working capital requirement.
While N19.324bn is to be used for the part-financing of the purchase of ConocoPhilips by Oando Energy Resources, N10.405bn would be used to meet working capital requirements.
“The application list for the shares will open to the strategic investor, for whom the placement memorandum has been prepared, on Wednesday (Today), December 18, 2013 and close on the same day,” it said.
Subsequently, the company said investors would 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 Group Chief Executive, Oando Plc, Mr. Wale Tinubu, was quoted in the statement as saying the special placement represents a milestone in the achievement of the company’s ‘overall strategic re-focus.’
He explained that the completion of the acquisition of ConocoPhillips Nigerian business was expected to transform Oando into a major indigenous producer of oil in Nigeria.
He added, “The inherent value to our esteemed shareholders is evident, as we look to grow our asset base and income streams, while 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 what the future has 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: Punch (by Simon Ejembi)
