.As core investor acquires minority shareholders’ equities
Oando PLC has notified the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange Limited (JSE Limited) that it has received an offer from its core shareholder – Ocean and Oil Development Partners Limited (OODP) to acquire the shares of all minority shareholders in Oando.
The Company will subsequently be delisted from NGX and JSE and re-registered as a private company.
The case began in 2021 when the fourteen minority shareholders of Oando led by Venus Construction Company Limited asked the Federal High Court sitting in Lagos to compel Ocean and Oil Development Partners Limited (OODP) or Oando to acquire 299,257,869 shares belonging to them.
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OODP did not challenge the shareholders but “filed an Answer and a Cross Petition dated 15th March 2022 stating that it is willing and ready to buy out the minority shareholders via a members’ scheme of arrangement. Oando in a memo to NGX on Thursday said it is intended that the Transaction will be executed through a Scheme of Arrangement in accordance with Section 715 of the Companies and Allied Matters Act, 2020 (as amended), and other applicable laws, rules, and regulations.
Under the Scheme, each Scheme Shareholder shall be entitled to receive the sum of N7.07 in cash or its equivalent in South African Rand (ZAR) for every ordinary share held by the qualified Scheme Shareholders at the Effective Date of the Scheme.
“The proposed Scheme Consideration represents a 58% premium to the last traded share price of Oando on 28 March 2023, being the day prior to the date of submission of the Scheme application to the Securities and Exchange Commission (SEC).