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Oando Energy Resources is planning to delist its shares from the Nigeria Exchange Group (NGX) as part of resolution to a petition filed by minority shareholders.
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 (“CAMA”).
The Petitioners requested that the Court order the buyout of their entire shareholding either by Ocean and Oil Development Partners Limited (OODP) or Oando, as the Petitioners believe 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 (pursuant to Section 715 of the Companies and Allied Matters Act 2020) to be approved by Oando’s shareholders at a general meeting.
In its ruling, the Court made an order directing 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.
Against this backdrop Oando said within the next 30 days, it will develop for submission to the NGX and SEC, a Scheme Document for OODP’s purchase of all the Company’s minority shareholders.
OODP currently has a shareholding of 57.37% in Oando PLC and the 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 in a statement signed by Ayotola Jagun its Company Secretary.
Oando which has a market capitalization of N70.86 billion, closed trading on Friday at N5.70 per share, -19.49% below its 52-week high of N7.08, set on Apr 26, 2022.
Oando shares have gone nowhere in the past 5 years leaving investors with negative returns.