Oando Plc has successfully raised N30.7bn to complete the acquisition of    ConocoPhillips’ Nigerian assets and meet other obligations.

The energy firm, which is listed on both the Nigerian and Johannesburg Stock Exchange, had announced its plans to raise the funds through a special placement exercise last week.

In a statement on Monday by the Corporate Communications Manager, Oando Plc, Alero Balogun, the company said following its completion board meeting on December 16, it received an approval from the Securities and Exchange Commission to raise the amount.

Under the special placement, the company issued 2.5 billion ordinary shares of 50 kobo each at N15 per share. The shares, it said, were fully subscribed.

According to the company, N19.3bn of the N30.7bn raised will be allocated to reducing the outstanding balance of Oando’s ongoing $1.6bn acquisition of  ConocoPhillips’ Nigerian assets, which has a completion date of January 31, 2014.

 The balance would be used to meet working capital requirements.

The statement explained that the effort to raise the capital reflected Oando’s short-term corporate and operational strategy to vastly increase its equity portfolio “through a three-pronged approach to reduce debt, improve diversification in upstream, and focus on higher margins.”

The Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the special placement was a major milestone for the company.

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.”

Source: Punch (by Simon Ejembi)