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Oando Plc plans to buyout 42.63% minority stake, delist firm from NGX board after a court ruling

By Samuel Bankole

Oando Plc on Wednesday said it is prepared to buy out the 42.63 per cent minority stake in the energy company and delist its share from the Nigerian Exchange if minority investors agree to the buyout scheme at a soon-to-be conveyed court-ordered meeting.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the energy firm said a court has ruled in favour of the buying out of the minority stake in the company following a petition filed on March 25, 2021, at the Federal High Court, Lagos by fourteen shareholders of Oando holding a total of 299,257,869 shares.

The company said consequence upon the court order, it plans to prepare a Scheme Document for the purchase of all the Minority Shareholders’ shares in Oando Plc for submission to the Securities and Exchange Commission (SEC) and/or the Nigerian Exchange Limited (NGX).

“Against this backdrop and within the next 30 days, the Company shall develop for submission to the NGX and SEC, a Scheme Document for OODP’s purchase of all the Company’s minority shareholders.

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“Today, OODP has a shareholding of 57.37 per cent in Oando PLC and the above-mentioned minority shareholders 42.63 per cent 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,” the company said on Wednesday.

It disclosed that the In its ruling, the Court made the following order in respect of the Petition: (i) 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.

“The Court further granted the following orders in respect of the Cross Petition filed by OODP: (i) An order that Oando shall prepare within 30 days a Scheme Document for the purchase of all the Minority Shareholders shares in Oando Plc for submission to the Securities and Exchange Commission (SEC) and/or the Nigerian Exchange Limited (NGX) as may be necessary.

“(ii) An order directing Oando PLC to convene within 120 days a meeting of the holders of its fully paid ordinary shares or their duly authorized proxies/personal representatives (where it becomes impracticable for any of the holders to attend or vote at a meeting) to consider, and if thought appropriate, approve (with or without modifications) a proposed Scheme of Arrangement by OODP Nigeria for the purchase of all the minority shareholders’ shares in Oando PLC.

Shares in Oando Plc dropped to a seven-week low after the court ordered the oil company to buy out minorities following a petition from some investors.

The shares closed at N5.21  compared with N5.78 it opened the market on Wenesday,

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