Oando Dips as Court Orders 43.63% Shares Buyout
Oando Plc’s share price sinks to N5.70 following a court order that the oil company should buyout its minorities’ shareholders’ 43.63% interest, according to its latest filing with regulators.
The oil company today announced the outcome of a court ruling following a petition filed on 25th March 2021 at the Federal High Court, Lagos by fourteen shareholders of Oando holding a total of 299,257,869 shares.
It said the petition was filed for and on behalf of Oando’s minority shareholders led by Venus Construction Company Limited and is brought pursuant to sections 353, 354 and 355 of the Companies and Allied Matters Act 2020.
According to the regulatory filing, Ocean and Oil Development Partners Limited (OODP) and Oando are listed as 1st and 2nd respondents respectively. READ: Airtel Africa Acquires Nigerian Minority Shareholding for N61bn
The petitioners requested that the Court order the buyout of their entire shareholding either by OODP or Oando, believing that this would be in their best interest as well as that of the Company.
In its response to the petition, OODP enumerated its position on the statements made in the petition and also filed a cross-petition, stating its willingness to buy out all the minority shareholders of Oando via a court-ordered Scheme of Arrangement to be approved by Oando’s shareholders at a general meeting, the statement reads.
In its ruling, the Court order Oando to carry out a Scheme of Arrangement in accordance with the provisions of the Companies and Allied Matters Act 2020 to consider OODP’s proposal to buy out the shares of all the minority shareholders in Oando.
In respect to OODP cross-petition filed, the Court further granted an order that Oando shall prepare within 30 days a Scheme Document for the purchase of all the Minority Shareholders shares in Oando Plc for submission to the Securities and Exchange Commission (SEC) and/or the Nigerian Exchange Limited (NGX) as may be necessary.
This includes an order directing Oando PLC to convene within 120 days a meeting of the holders of its fully paid ordinary shares or their duly authorised proxies/personal representatives.
Against this backdrop and within the next 30 days, the Company shall develop for submission to the NGX and SEC, a Scheme Document for OODP’s purchase of all the Company’s minority shareholders.
Today, OODP has a shareholding of 57.37% in Oando PLC and the above-mentioned minority shareholders 42.63% shareholding.
“This action precipitated by the petition from certain Oando minority shareholders, if approved by all the minority shareholders at the court-ordered meeting will result in a voluntary delisting of the Company’s shareholding on the NGX in accordance with its guidelines for delisting of securities”, Oando said. #Oando Dips as Court Orders 43.63% Shares Buyout