18 December 2013, Lagos -Oando Plc, a leading indigenous integrated energy group, will today raise N30.7 billion through a Special Placement (SP) of 2.047 billion ordinary shares of 50 kobo each at N15 per share.
The SP, which is to be made to a strategic investor, was approved at a completion board meeting held on Monday in Lagos.
Although Oando did not disclose the name of the core investor, it said the application list for the shares will open and close today.
According to Oando, the investor will apply for the shares through the issuing houses, led by Vetiva Capital Management Limited, with FBN Capital Limited and FCMB Capital Markets Limited acting as joint issuing houses.
However, the SP is subject to the approval of the Securities and Exchange Commission (SEC).
The net proceeds of the SP, estimated at N29.73 billion after deducting the total cost of the placement, will be used to part finance Oando Energy Resources’ purchase of ConocoPhillips Nigerian business and to meet working capital requirements.
Commenting on the special placement, Group Chief Executive Oando Plc, Mr. Wale Tinubu, said it represents another key milestone in the achievement of the company’s overall strategic re-focus.
“A significant portion of the proceeds will be used to finance the closure of our upstream assets acquisition process, a transaction we believe will transform us into a major indigenous producer of oil in Nigeria. The inherent value to our esteemed shareholders is evident, as we look to grow our asset base and income streams, whilst at the same time enlarging the portion of revenue we are able to declare as profits, through the increased margins the upstream business offers us. We are excited about the future in store for our company, as 2014 will witness the culmination of all our efforts over the past 12 months, as we begin to reap the dividends of a carefully planned and executed strategy.”
– Goddy Ngene, This DCay