OANDO Plc’s share price dropped to N5.70 as a result of a court ruling requiring it to purchase the 43.63 percent stake held by its minority shareholders according to the oil company’s most recent regulatory filing.
Following a case filed on March 25, 2021, at the Federal High Court in Lagos by fourteen Oando shareholders holding a combined 299,257,869 shares, the oil business today disclosed the conclusion of the court decision.
According to the statement, the petition was brought in accordance with sections 353, 354 and 355 of the Companies and Allied Matters Act 2020 on behalf of Oando’s minority shareholders, who were represented by Venus Construction Company Limited.
Ocean and Oil Development Partners Limited (OODP) and Oando are identified as the first and second responders, respectively, in the regulatory filing.
The petitioners argued that it would be in both their best interests and the interests of the Company for the Court to force OODP or Oando to buy out their full shareholding.
The statement reads that in its response to the petition, OODP outlined its position on the claims made therein and also filed a cross-petition expressing its willingness to acquire all of the minority shareholders of Oando through a court-ordered Scheme of Arrangement that would be approved by Oando’s shareholders at a general meeting.
The Court’s decision requires Oando to implement a Scheme of Arrangement in accordance with the Companies and Allied Matters Act 2020 in order to take into account OODP’s proposal to acquire the shares of all of Oando’s minority shareholders.
The Court further granted an order that Oando prepare a Scheme Document for the purchase of all the Minority Shareholders’ shares in Oando Plc within 30 days and submit it to the Securities and Exchange Commission (SEC) and/or the Nigerian Exchange Limited (NGX), as may be required, in relation to the OODP cross-petition that was filed.
An order instructing Oando PLC to call a meeting of the owners of its fully paid ordinary shares, or their lawfully authorized proxies/personal representatives, within 120 days is included in this.
Oando PLC must call a meeting of its fully paid ordinary shareholders, or their lawfully authorized proxies or personal representatives, within 120 days.
In light of this, the Company shall create a Scheme Document for OODP’s acquisition of all of the Company’s minority shareholders within the next 30 days for submission to the NGX and SEC.
In Oando PLC today, OODP owns 57.37 percent of the shares while the aforementioned minority owners own 42.63 percent.
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.
