Some shareholders have expressed concerns over Oando Plc’s plan to delist from the capital market and acquire the shares of minority shareholders.
Oando in a corporate notice on Thursday informed the Nigerian Exchange Limited of its latest plans.
The company’s core investor, Ocean and Oil Development Partners Limited, proposed to acquire the shares of its minority shareholders at the rate of N7.07 per unit.
Oando had reported N34.7bn as profit after tax in the 2021 financial period and at the close of trading on Thursday, the shares of the company was N5.40 per unit on the NGX.
Part of the corporate notice read, “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.”
Reacting to the development, the Chairman of the Emeritus of the Independent Shareholders Association of Nigeria, Sunny Nwosu, slammed the company and said shareholders of Oando, who have not been paid in years, now have to deal with the acquisition of their shares.
He said, “In the last 10 years, shareholders of Oando have not received any dividend from them. You are selling the assets that have made NNPCL a super regulator and a super marketer; because they are the ones distributing the fuel that is being imported with taxpayers’ money; and now, they are also a super retailer. This is not part of corporate governance, this is cheating! We have seen a lot of disrespect for shareholders, especially for people who think they are doing good investments by going to the capital market.”
Also commenting, the Coordinator of the Sage Shareholders Association, Ibadan, Kehinde Olowolafe, said while it was within Oando’s right to exit the market, it was important that regulators ensure minority shareholders were not cheated.
He said, “The capital market is governed by laws, rules and regulations, and many companies operating in the market have the obligation to respect the rules that guide them. It is within the right of Oando Plc, having met the requirements to do so. The market is free entry and free exit. What I know is that the regulators must ensure that shareholders particularly minority ones are not shortchanged or cheated by the owners.”
On the N7.07 per unit proposed for the acquisition of the shares, Olowolafe said, “Although it is not favourable to us, during the EGM, we can talk to them to increase the price. There will be bargaining between the minority shareholders and the owners in order for us not to be cheated by the company.”
Meanwhile, Oando says it has applied to the Securities and Exchange Commission for a “No Objection” to the transaction.
The shares of Oando closed at N5.70 on Friday and at the close of trade on the NGX on Monday, the share appreciated by 0.88 per cent to close at N5.75.
Other companies that have delisted from the bourse include 11 Plc, formerly Mobil Oil Nigeria Plc, which voluntarily exited the NGX in 2021, Studio Press Nigeria Plc.