By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Oil marketing firm Oando plc on Tuesday said it has changed its ongoing rights issue price from the initial N22.00 per share to N16.50 per share, according to the company in a notice on its official website.

“The initial Offer size, price and ratio of 2,217,265,185 ordinary shares of 50 kobo each at N22.00 per share (1:4) has been updated to a new Offer size, price and ratio of 2,956,353,579 ordinary shares of 50 kobo each at N16.50 per share (1:3) (the subsisting terms),” the company said.

According to Oando, the revision was required to better align the terms of the Rights Issue with current market conditions, given the 28 percent fall in the NSE All Share Index over the last three (3) months.

Following this, the oil marketer applied to the Securities and Exchange Commission (SEC) to change the Offer size, price and ratio of the Rights Issue and which was approved.

Oando advised shareholders who have already taken up their Rights under the initial offer terms need not take any actions. “The change in the offer price and the share exchange ratio imply that the consideration to be paid for rights pertaining to existing holdings remains unchanged under both scenarios,” the company added.

The company affirmed that following this development, all affected shareholders who held shares at close of business on Friday July 25, 2014 will be allotted additional shares, representing the appropriate increment over and above the number of Rights they previously accepted with no update to the amount of the consideration. “All other terms of the offer remain the same,” Oando said.