Oando to Buyout Minority Shareholders and Delist from NGX

Following three years of dispute and suspension, the largest shareholder in Oando Plc, Ocean and Oil Development Partners Limited (“OODP”) has made known its willingness to acquire 299,257,869 shares belonging to 14 shareholders of the company and delist the company from the Nigerian Exchange Limited (NGX).

The minority shareholders had filed a petition through Venus Construction Company Limited to compel majority shareholder OODP to acquire their equities in the company in line with sections 353, 354 and 355 of the Companies and Allied Matters Act 2020 (“CAMA”).

According to a statement issued by Oando and obtained by Investors King, OODP holds 57.37% equity in Oando Plc while the 14 shareholders own a combined 42.63% stake in the company.

If the purchase is approved by all the minority shareholders at the court-ordered meeting, it will result in a voluntary delisting of Oando from the Nigerian Exchange Limited (NGX) in line with guidelines for delisting securities.

Oando was unable to convey its Annual General Meeting (AGM) for the past three years following a dispute between shareholders and the company, and the eventual suspension of the company by the Securities and Exchange Commission (SEC).

On Wednesday, the company released its 2019 and 2020 unaudited financial statements.  According to an analysis done by Investors King, despite receiving N170 billion in tax credit in 2019, Oando reported a N207.078 billion loss for the period.

The company managed to cut down on its losses by about 65% in 2020 to N132.570 billion. While Oando had blamed the organisation issues on certain minority investors and the SEC, an analysis of the company’s financial statements pointed to a series of structural issues and the need for a sound management structure.