Oando PLC holds Completion Board Meeting to Raise N54.6 billion through Rights Issue
Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced its plans to commence its Rights Issue exercise.
The company received regulatory approval for its Rights Issue from the Securities & Exchange Commission (“SEC”) on the 12th December 2012 and held its Completion Board Meeting on the 19th December 2012. Oando plans to raise N54,578,835,312 through the issuance of 4,548,236,276 ordinary shares of 50 Kobo at N12.00 per share. The Rights Issue exercise will open on Friday, 28 December, 2012 and close on Wednesday, 6 February, 2013. Vetiva Capital Management Limited is the Lead Issuing House, with FBN Capital Limited and FCMB Capital Markets Limited will act as Joint Issuing Houses.
The proceeds from the Rights issue will be used for the following:
•Part-repayment of N60 billion syndicated loan used to fund the acquisition of upstream assets and swamp drilling rigs.
•Part-financing of acquisition of upstream and midstream assets by Oando’s Upstream subsidiary, Oando Energy Resources (“OER”).
•Investment in working capital to support increased level of business.
Commenting Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “Now that we have obtained the necessary regulatory approvals for our capital raise we are at the final stages in the execution of our overall strategy to increase our exposure to the Upstream Sector whilst reducing the dependence on the downstream. In 2010 we raised N21.1Bn through a Rights Issue, it was a highly successful event, as it closed 28% oversubscribed and we look forward to a similar outcome in this exercise. We count on the consistent support of our shareholders to seize the opportunity to take up their rights and benefit from the higher margin value creation the Upstream offers.”
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