By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)- Shareholders of Oil marketer Oando Plc Tuesday approved a 250 billion naira fresh capital raising by the company following an extraordinary general meeting (EGM).

The 250 billion naira fresh capital will be raised through a combination of rights issue, global depository receipts and bonds the company agreed at the EGM.

Out of the 250 billion naira, Oando is billed to raise 50 billion naira via a rights issue which its shareholders have agreed at the EGM in order to increase its share capital base to 7.5 billion naira, from 5 billion naira it had previously.

Oando also listed on the Toronto and Johannesburg stock exchanges in late January 2014 announced that Oando Energy Resources Inc (OER) its subsidiary intends to do a $50 million private placement to raise fresh funds, in addition in connection with the Offering, OER intends to acquire a 5% interest in OML 131 in exchange for common shares of the Company (the “OML 131 Acquisition”).

According to the oil marketer, the Offering is expected to consist of 35,070,063 common shares of the Company and 17,535,031 common share purchase warrants for gross proceeds of $50 million (each Common Share and half-Warrant, a “Unit”) at a price of C$1.57 per Unit.

Oando says that each whole Warrant will entitle the holder thereof to acquire one common share of the Company at a price of C$2.00 per common share for a period of 24 months from the date of the closing of the COP Acquisition.

OER according to Oando Plc is focused on oil and gas exploration and production in Nigeria, and thus entered into two financial agreements to raise a total of $800 million to partly fund its acquisition of the upstream oil and gas business of ConocoPhillips.

Oando had earlier paid a $450 million deposit for the acquisition of ConocoPhillips reaming a balance of about $1.23 billion to be paid.