Oando Hits N1trn in Market Value as Group Addresses OVH Issue
Oando Plc has joined the big players on the Nigerian Exchange with more than N1 trillion in market valuation. The energy company has seen successive price surges in the equities market as its acquisition tastes continue to attract buying interest.
According to data from the Nigerian Exchange, the energy company share price rose to N84.55 on Monday from its opening price of N76.9, gaining 9.95% on the day, The price surge increased its market value to N1.051 trillion, which is the indigenous energy company’s all-time high (ATH) on the Nigerian Exchange.
The management explained the issue over its deal with NNPCL over the transfer of OVH that has been generating issues. Some media reports allege that NNPC Limited has fraudulently transferred ownership of all petrol stations to Oando Plc’s Group Chief Executive, Mr. Adewale Tinubu.
In reaction to media reports about its acquisition, Oando recalled that the company partially divested of the majority interest in its downstream business, when it sold 60% of its shares in Oando Marketing Limited to a consortia.
The consortia include International Trading Company, Vitol Group, and Helios Investment Partners (Helios), an international private equity firm, according to an official statement released.
It said the resulting entity was called OVH Energy BV, reflecting the names of the three partners (Oando, Vitol, and Helios). The company said it concludes recapitalization and partial divestment of equity stakes in its downstream operations to a consortium of Helios and Vitol-Oando PLC.
Management said in the official statement that a brand license agreement was also entered into on the 30th of June 2016 between Oando PLC and OVH Energy BV for the use of the Oando logo/brand for a 10-year period.
The management told the Nigerian Exchange that the brand licence agreement was subsequently terminated on the 24th of March 2023 and OVH Energy was given a term of 18 months to completely debrand and remove the Oando Brand from its products and assets.
This term expires in September 2024, according to Oando, adding that its strategic intent at the time of the partial divestment was to completely exit its downstream and midstream business to enable it focus on its Upstream business by expanding its portfolio of upstream assets.
Oando said it divested additional 35% of its shareholding in OVH Energy by the issuance of 210,000 additional class A shares to HV Investments BV (Helios/Vitol) on the 5th of October, 2017.
The company said it completely exited from the OVH partnership when it transferred its remaining 5% shareholding in OVH Energy BV to Vitol and Helios on 29th of November 2019. #Oando Hits N1trn in Market Value as Group Addresses OVH IssueCBN Defends Naira with $39m in Forex Market
