Minority shareholders in Oando have filed a petition demanding for their shares to be acquired by the company or the majority investor in the firm, Ocean and Oil Development Partners Limited (OODP).
OODP has 57.37% ownership of Oando, and has agreed to purchase the 42.63% stake the minority shareholders, led by Venus Construction Company Limited, are willing to sell, in a bid to exit their funds from the firm that has been enmeshed in stakeholders’ disputes.
Join our WhatsApp ChannelGoing by the current market share of Oando, the share acquisition will cost OODP about N1 billion, and will change the status of the domestic oil & gas firm to a private company, from being publicly listed.
The agreement between both parties is subject to shareholders approval during a general meeting. The petition was first filed last year, March 25, with OODP listed as 1st respondent, and Oando as 2nd.
Oando is expected to draft a Federal High Court-ordered Scheme of Arrangement disclosing the details of the deal between the minority shareholders, who are about 14, and OODP, to the capital market authority, Nigerian Exchange Limited (NGX) and regulator, Securities and Exchange Commission (SEC) for approval, within the next 30 days.
The company has 120 days to organise a general meeting with shareholders of its fully paid ordinary shares, as well as duly authorised proxies/personal representatives chosen by stakeholders that will not be available.
The minority shareholders will be exiting the company that has been having internal dispute with its shareholders and the capital market regulator over alleged abuse of office and misappropriation of company’s resources.
This led to the initial suspension of Oando’s Chief Executive Officer, Wale Tinubu, and other members of the board of directors, before they had a out-of-court settlement with the Securities and Exchange Commission, and the oil and gas seller was also mandated to pay a fine.
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