A Review of the Nigerian Energy Industry

SEC approves changes in Oando’s Rights Issue

30 January 2015, Lagos – The Securities and Exchange Commission, SEC, has approved a change in the Rights Issue terms of Oando Plc.

oandoOando said in a filing with the Nigerian Stock Exchange, NSE, that following the approval received from the SEC, the Rights Issue size, price and ratio have been revised from 2.23 billion ordinary shares of 50 kobo each at N22.00 per share on the basis of one new share for every four ordinary shares previously held to 2.96 billion ordinary shares of 50 kobo each at N16.50 per share on the basis of one new ordinary share for every three ordinary shares held.

According to the statement, the Rights circular and the initial terms of the Rights Issue remain valid during the acceptance/renunciation period and are only amended to the extent provided for in the notice.

The company said that shareholders who have already submitted their acceptance forms will not be required to submit new forms. However, shareholders who have not submitted their acceptance/renunciation forms are requested to complete the forms as it is and in accordance with the instruction contained in the forms.

“Shareholders should note that the variation in the terms of the Rights Issue will not result in any change in the subscription amounts due from each shareholder, other than instances where there are rounding down approximations.

Thus, any minimal surplus subscription funds that may accrue as a result of rounding down approximations will be refunded by the registrars to the affected shareholders upon clearance of the basis of allotment by SEC.

“Similarly, shortfalls in subscription amounts as a result of rounding down approximations will be covered by the company to ensure that no shareholder is worse off as a result of the change in the Rights Issue terms,” Oando said in the statement

It would be recalled that Oando had earlier in the month secured approval for extension of the Rights Issue by two weeks. Accordingly, the offer which was earlier scheduled to close on Wednesday 14 January 2015 would now close on Wednesday 28 January 2015.

 

– Vanguard

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