By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Oil marketing firm, Oando Plc on Thursday said it has increased its stake by 1.6 percent to 93.7 percent in its Toronto-listed unit Oando Energy Resources (OER).
Oando said to increase its stake in OER, it converted a $218.9 million loan to the subsidiary into equity.
The oil marketing company said the debt is part of a $1.2 billion facility Oando granted OER in February to help finance the acquisition of ConocoPhillips.
According to Oando Nigeria, Oando Energy Resources converted the debt to equity at C$1.57 per unit and issued 150 million units to its parent company Oando Plc. It said each unit consists of one share of OER and half a warrant to buy an extra share at a price of C$2 per share.
‘’Amounts owing under the Oando Loan in the future may be converted into Units at the conversion price of C$1.57 per Unit provided that, as a result of such conversion, the aggregate beneficial ownership and control by Oando Plc and its related parties over voting securities of Oando Energy Resources does not exceed 94.6% (on an undiluted basis). These conversions may be completed until July 20, 2014 or such later date as may be permitted by the Toronto Stock Exchange,’’ Oando said.
Oando on June 18 announced receipt of the consent of the Honourable Minister of Petroleum Resources of Nigeria for the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips for a total cash consideration of $1.65 Billion.
The oil marketing firm said further to this approval by the Nigerian government, OER and ConocoPhillips are now positioned to complete the ConocoPhillips Transaction.
OER and ConocoPhillips on June 30 announced they have entered into an agreement to extend the outside date for completion of the proposed acquisition to July 31, 2014.
