- London Arbitration Court Awards $680m Against Wale Tinubu’s Firms
The London Court of International Arbitration has awarded a total of $680m (about N216bn) against two firms – Ocean and Oil Development Partners Limited, which owns 55.96 per cent of Oando Plc; and Whitmore Asset Management Limited – belonging to Nigerian businessman, Wale Tinubu, and his partner, Omamofe Boyo.
The award was in favour of Ansbury Investments Inc, owned by an Italian-Nigerian businessman, Gabriele Volpi.
A copy of the LCIA verdict delivered on July 6, 2018 was obtained on Sunday.
In the document jointly signed by the presiding arbitrator, David Mildon (Queen’s Counsel), and co-arbitrators, Prof Marco Frigessi di Rattalma and Harry Matovu (QC), the court decided that, “The OODP (Ocean and Oil Development Partners Limited) BVI is presently indebted to Ansbury in the total principal sum of $600m, being $130m in respect of the initial loans and $470m in respect of the subsequent loans, which sums are overdue and owing.
“Whitmore is presently indebted to Ansbury in the total principal sum of $80m in respect of the loan made under the First Loan Agreement (as amended).”
International counsel for Ansbury Investment, Mr Andrea Moja, said in a statement on Sunday that the award had been communicated to Tinubu and Boyo’s firms.
“The award was communicated to the parties on July 9, 2018,” Moja stated.
According to the statement, Ansbury had in 2012 invested about $700m in Ocean and Oil Development Partners Limited by acquiring a 61.9 per cent stake in the firm, while a company owned by Tinubu, Withmore Limited, held 38.10 per cent of the stake in OODP BVI.
The statement added, “Tinubu had approached Mr Volpi to invest in the British Virgin Islands-registered firm when Oando Plc was seeking to acquire ConocoPhillips’ upstream oil and gas assets in Nigeria for $1.5bn.
“OODP BVI, in turn, owns 99.99 per cent of the shares of Ocean and Oil Development Partners Nigeria Limited, which holds 55.96 per cent of the shares in Oando.
“When the disagreement broke in 2017, Ansbury also petitioned the Securities and Exchange Commission in May accusing the management of Oando Plc of mismanagement, cooked books and huge indebtedness.”
Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper
Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.
This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.
Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.
The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.
FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.
The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.
He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.
Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.
In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.
The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
African Airlines Projected to Cut Losses to $400m in 2024, Says IATA
The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.
The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.
IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.
The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.
Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.
Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.
IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.
However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.
He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.
Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.
Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.
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