Proshare Logo
   Market Date: 21-11-2014   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Oando’s N20.4 bn Rights Issue to boost operations,Tinubu

Category: Capital Market


  Read (1232)
Oando’s N20.4 bn Rights Issue to boost operations,Tinubu

 

Oando Plc, a major integrated energy solutions provider has explained that its ongoing Rights Issue will enhance its diversified operations that will eventually results to bumper returns for its stakeholders.

 

Group Managing Director/ CEO, Oando Plc, Mr.Wale Tinubu told newsmen in Lagos that the proceeds from the company’s N20 billion Rights Issue will enhance its operations that will eventually results to bumper returns to stakeholders.

 

 

According to him, “ Oando is committed to providing maximum long term shareholder value and takes into account the interest s of all its stakeholders. Our Board and management are confident that in the absence of unforseen circumstance the company will continue to record significant growth and improvements in its operations in the years ahead. No doubt Oando Marketing continues to be the leading retailer of petroleum products in Nigeria, with 18 per cent market share in distribution of refined petroleum products, and 562 retail outlets and terminals spread across Nigeria with subsidiaries in Ghana, Togo, Republic of Benin and Liberia”.

 

 

While explaining the purpose of the Rights Issue, he said, “ The Rights Issue is very important for the company as it will help refinance the acquisition of upstream asset,  provide additional capital to fund the operation of the upstream business  and also meet short and medium term investments in its gas and power business segment.”

 

 

Responding to question on the timing of the offering, he said, “ There is no better time than now. The offer is a good one coming from a viable company with very sound fundamentals. So our shareholders will surely take their Rights because it is a juicy Offer. We see the offering to be very successful. We have track record and the company is doing well. A good offer can sell any time. So we are confident that the Issue will be fully subscribed.”

 

 

The net Rights Issue proceeds is estimated at N20.437 billion after deducting the total cost of the Issue estimated at N681, 312 million, (representing 3.23 per cent of the Issue), will be applied as follows : Upstream Assets Refinancing N14.919 billion; Operational Capital Development and Upstream Business Development N3.883 billion; Technology N3.658 billion; People N225 million and Working capital N1.634 billion.Onado Plc has an authorised share capital of one billion comprising 2 billion ordinary shares of 50 kobo each with issued and fully paid up capital of N452,542,314 comprising 905,084,628 ordinary shares of 50 kobo each.

 

 

The company is presently offering 301,694 876 ordinary shares of 50 kobo each to its existing shareholders at N70 per share. The company share is currently being traded at N93.99 per share at the stock market.

 

 

Tinubu reaffirmed that the size of businesses the company runs require a substantial amount of capital. According to him , “We are doing things in several stages. The one we are doing now is Right Issue which is a small amount of over N20 billion for the recapitalisation process. Then we will be proceeding to do a much larger international equity Issue which would occur at the beginning of the second quarter. Then there is going to be two debt issues. One is a local five year debt issue which we are working on right now and the mandate has been signed, it is in the final stages.

 

 

“The final thing would be the bond issue. We will be doing a debt restructuring 5 year term for N60 billion. Then we would do an international equity and debt raising of N75 billion which would come in the second quarter. The bulk of the money is going into our gas and upstream division for the upstream, we have our crude oil. You are aware; we have diversified heavily towards increasing our production in the crude oil sector.”

 

 

The bold move made by Oando Plc buttressed the company’s growth and strong confidence even in the turbulent oil industry especially in Nigeria with her unending problems in Niger Delta. The issue of Niger Delta has a global effect on the oil price and energy sector but with relatively less impact on the oil-marketers.

 

 

Oando Plc is listed on both Nigerian and Johannesburg Stock Exchanges, and is in the process of listing  in London Stock Exchange. Meanwhile, major parties to the ongoing Rights Issue include: Vetiva Capital Market Limited as lead Issuing House and FCMB Capital Markets Limited and Stanbic IBTC Bank Plc as joint Issuing Houses.

 

 

First Registrars Nigeria Limited as registrar to the Issue; PriceWater HouseCoopers as Chartered Accountants; Vetiva Securities Limited, CSL Stockbrokers Limited, Stanbic IBTC Stockbrokers Limited as joint stockbrokers to the offer.

 

 

The Oando Group has emerged as a leading indigenous player in the Nigerian Energy space within the seven years of its operations, following a change in ownership and management in 2002, achieving milestone innovations in its industry and recording exceptional expansions in operations, scale and profitability. Despite the characteristic odds facing new business entrants across the energy value-chain, the company has recorded relative successes in its expansions into different spheres within the energy sector, and with apparent room for future growth in its business activities.

 

 

(Source: Vanguard)



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Capital Market

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Volunteer Program
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint