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Oando Drags SEC to Appeal Court Over Technical Suspension

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Oando Plc
  • Oando Drags SEC to Appeal Court Over Technical Suspension

Oando Plc has headed for the Court of Appeal in its bid to lift the technical suspension imposed on its shares on the floor of the Nigerian Stock Exchange by the Securities and Exchange Commission.

The oil company had earlier approached the Federal High Court in Lagos to challenge SEC’s suspension of its shares and an audit of its business activities by forensic experts hired by SEC.

Though Justice Rilwan Aikawa of the Federal High Court had earlier granted an interim injunction restraining SEC from carrying out the audit, the same judge, in a ruling on November 23, 2017, struck out Oando’s suit, saying he had no jurisdiction to entertain it.

The judge said the appropriate forum to ventilate the issue was the Investment and Securities Tribunal.

But displeased with the decision, Oando, through its lawyer, Mr. Seyi Sowemimo (SAN), went before the Court of Appeal seeking the reversal of Justice Aikawa’s ruling.

Sowemimo insisted that the Federal High Court rather than the IST was the appropriate forum to hear the case.

He said the judge erred in law to decline jurisdiction because “the suit touched and concerned the operation of a company incorporated under the Companies and Allied Matters Act.”

According to him, by virtue of Section 251(i) (e) of the constitution, the Federal High Court is empowered to entertain CAMA-related cases.

He is, therefore, urging the Court of Appeal to make an order “reversing the (Justice Aikawa’s) order striking out the suit and restoring the matter to the cause list of the Federal High Court for accelerated hearing.”

At the Monday’s proceedings before Justice Aikawa, Sowemimo informed the judge about the appeal and urged the judge to make an order “preserving the res to prevent the appeal from being rendered nugatory.”

But counsel for SEC and the Nigerian Stock Exchange, which was joined as the second defendant, Chief Anthony Idigbe (SAN), opposed Sowemimo’s application for the preservation of the res.

Idigbe argued that the issues canvassed by Oando in its appeal “are not substantial in law.”

He insisted that it was in the best interest of investors, shareholders and members of the general public that SEC placed Oando’s shares under technical suspension.

He said the technical suspension was to prevent panic and dumping of Oando’s shares by investors and members of the public.

Idigbe added that the technical suspension was temporary and was imposed to allow for an independent forensic audit of Oando’s business activities.

He said there was no point for Justice Aikawa to give an order preserving the res because “the suspension of the trading of the plaintiff’s shares in the Nigerian Stock Exchange has already been completed.”

“The forensic examination of the plaintiff’s business activities has already commenced and the parties are waiting for the report of the said investigation.

“The temporary suspension of trading of the shares is not a punitive action against the plaintiff but a device to protect the shares of the plaintiff from further decline because of the investigation.

“The undertaking of the forensic examination of the plaintiff by independent experts will not prevent a return to status quo if the appeal succeeds,” Idigbe added.

Sowemimo prayed for time to file a reply to Idigbe’s counter-affidavit.

Justice Aikawa adjourned further proceedings in the case till Wednesday, December 13.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Oppenheimer Acquires Full Control of Nigeria’s GZ Industries in Bet on Economic Revival

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GZ Industries Limited

Jonathan Oppenheimer, scion of South African billionaire Nicky Oppenheimer, has secured full ownership of Nigeria’s largest beverage can manufacturer, GZ Industries Ltd.

Oppenheimer Partners Ltd. concluded the acquisition of the remaining shares from Affirma Capital, formerly known as Standard Chartered Private Equity.

While financial details were not disclosed, the private equity firm previously held a 37.5% stake in GZ Industries, a major supplier of cans to global brands such as Coca-Cola.

The move positions Jonathan Oppenheimer to play a pivotal role in shaping GZI’s growth trajectory in sub-Saharan Africa.

With urban, educated adults in the region leading global sugary drink consumption with 12.4 servings per week, GZI’s strategic importance in meeting this demand is underscored.

Oppenheimer Partners initially invested in GZI in 2018, coinciding with the establishment of a factory in South Africa, where the company now commands a 20% market share.

GZI, a producer of 3 billion aluminum cans annually in Africa, competes with Nampak Ltd., which is currently undergoing restructuring efforts.

Affirma Capital’s exit from GZI aligns with its broader investment strategy in Africa, having invested in 11 companies since 2008, with eight successful exits returning over $800 million to investors.

Jonathan Oppenheimer, part of the wealthy Oppenheimer family, inherits a substantial role in GZ Industries, further diversifying the family’s portfolio, which amassed significant wealth through the 2012 sale of their stake in De Beers for about $5 billion.

The family’s combined net worth is estimated at $9.4 billion, according to the Bloomberg Billionaires Index.

As Nigeria’s President Bola Tinubu outlines ambitious spending plans for 2024, the acquisition positions GZI strategically in a potentially thriving economic landscape.

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Merger and Acquisition

Equinor Concludes Sale of Stake in Chevron’s Agbami Oil Field to Chappal Energies

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Chevron

Norwegian energy company Equinor has successfully finalized the sale of its 20.21 per cent stake in Chevron’s Agbami oil field.

The transaction, including Equinor’s 53.85 per cent ownership in Oil Mining License 128, was completed with Nigerian-owned Chappal Energies. The financial details of the deal have not been disclosed.

Equinor, a longstanding player in Nigeria’s energy sector since 1992, views this divestment as a strategic move in line with its broader international oil and gas portfolio optimization strategy.

Nina Koch, Equinor’s Senior Vice President for Africa Operations, commented on the transaction, stating, “This transaction realizes value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”

Chappal Energies, the acquiring entity, is a committed Nigerian-owned energy company with ambitions to further develop the assets, contributing significantly to the Nigerian economy.

The completion of the transaction remains contingent on various conditions, including regulatory and contractual approvals.

Equinor’s exit from the Agbami oil field signifies a shift in its global asset portfolio management, enabling the company to concentrate on its core operational areas.

The deal aligns with the broader industry dynamics and demonstrates Equinor’s commitment to strategic alignment and operational efficiency.

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Company News

Dangote Petroleum Refinery Set to Make History with Public Listing on NGX

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Dangote refinery

Aliko Dangote, the president and chief executive of Dangote Industries Limited, has announced plans to publicly list the subsidiary, Dangote Petroleum Refinery, on the Nigerian Exchange Limited (NGX).

Dangote expressed confidence in overcoming previous challenges related to crude oil supply, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The refinery, poised to commence operations in December, holds the promise of significant contributions to the Nigerian economy.

At full capacity, it is expected to produce 650,000 barrels of oil per day, with an initial rollout of 540,000 barrels daily.

The facility will produce 27 million liters of diesel, 11 million liters of kerosene, and nine million liters of jet fuel, sourcing crude from various Nigerian producers, including the state oil company.

A finalized deal for the delivery of the first cargo of approximately six million barrels next month signals the imminent realization of this ambitious project.

The refinery’s impact is anticipated to extend beyond the oil and gas sector, with projections suggesting significant cost savings for Nigeria by eliminating the need to import petrol.

Industry operators and government officials are optimistic about the transformative potential of the Dangote Refinery.

Akinwumi Adesina, President of the African Development Bank (AfDB), lauded the project as the best-industrialized initiative for Africa, projecting substantial savings for Nigeria and the continent as a whole.

As Nigeria’s largest refinery project, the facility has garnered praise from the Lagos Chamber of Commerce and Industry (LCCI).

Dr. Chinyere Almona, the LCCI Director-General, commended the visionary efforts of Aliko Dangote and the supportive federal government, emphasizing the refinery’s capacity to meet Nigeria’s refined petroleum product needs.

The impending listing on the NGX positions Dangote Petroleum Refinery as a catalyst for economic growth, energy security, and self-sufficiency in Nigeria and beyond.

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