Oando Plc (NGX: OANDO) has demanded an immediate cessation of libelous content against it on media platforms.
In a regulatory filing on Monday, the company responded to media reports alleging that Oando and its Group Chief Executive Mr. Adewale Tinubu took ownership of NNPC petrol stations through a fraudulent transfer from NNPC Limited (NNPCL).
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The object of the media claims and Oando’s counter claim borders on the acquisition of Oando branded fuel retail stations by NNPC Retail, a subsidiary of NNPC Limited.
In the regulatory filing seen by Investogist, Oando says that the statements making the rounds in media houses “are entirely without foundation and have been made with reckless disregard for the truth.”
“These statements are entirely without foundation and have been made with reckless disregard for the truth. The misinformation being spread has caused significant reputational harm to both the company and its leadership and their continued circulation is both legally and ethically unacceptable,” it went further to say.
Investogist reported in October 2022 of the acquisition of the Oando branded retails service stations in Nigerian and Togo by NNPC Limited. NNPCL at the time stated that the stations will be rebranded into the NNPC brand, and has proceeded to do the same.
A year later, in 2023, the Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited Mele Kyari stated that the acquisition of OVH Energy Marketing (OVH) grew NNPC Retail Limited’s profit to N18.4bn in the first quarter of 2023.
Premium Times in August 2024 reported that NNPC Retail, a subsidiary of NNPC Limited no longer exists after it asked a court to transfer its ownership and properties to OVH Energy Marketing Limited, “a firm it claimed to have bought.”
In another report, Premium Times described a “controversial purchase of OVH Energy Marketing Limited and how the purchased company essentially took over the management of the buyer,” which an NNPC insider described as “the most ridiculous business acquisition in the world.”
Oando Plc, a company listed on both the Nigerian Exchange Limited and Johannesburg Exchange has come out to explain its relationship with OVH Marketing (OVH), the operator of the Oando branded retail stations.
What Oando is saying
Basic research of publicly available information would confirm that on the 30th of June 2016, Oando partially divested of the majority interest in its downstream business, when it sold 60% of its shares in Oando Marketing Limited to a consortia consisting of International Trading Company, Vitol Group (“Vitol”) and Helios InvestmentPartners (Helios), an International Private Equity firm.
The resulting entity was called OVH Energy BV reflecting the names of the three partners (Oando, Vitol and Helios). Please reference the Press Release issued at the time of the initial divestment (Oando concludes recapitalization and partial divestment of equity stake in its downstream operations to a consortium of Helios and Vitol – Oando PLC) Oando concludes recapitalization and partial divestment of equity stake in its downstream operations to a consortium of Helios and Vitol – Oando PLC.
Recognising the goodwill in the Oando name, a Brand Licence Agreement was also entered into on the 30th of June 2016 between Oando PLC and OVH Energy BV for the use of the Oando logo/brand for a 10-year period. The brand licence agreement was subsequently terminated on the 24th of March 2023 and OVH Energy was given a term of 18 months to completely debrand and remove the Oando Brand from its products and assets.
This term expires in September 2024.
Oando’s strategic intent at the time of the partial divestment was to completely exit its downstream and midstream business to enable it focus on its Upstream business by expanding its portfolio of upstream assets. On the 5th of October, 2017, Oando divested of an additional 35% of its shareholding in OVH Energy by the issuance of 210,000 additional class A shares to HV Investments BV (Helios/Vitol).
On the 29th of November 2019, Oando completely exited from the OVH partnership when it transferred its remaining 5% shareholding in OVH Energy BV to Vitol and Helios Oando has a long-standing commitment to transparency and integrity, and it will not tolerate the dissemination of falsehoods that undermine its reputation or that of its executives.
We view the actions of these online digital and media platforms as a serious breach of ethical standards and a blatant violation of legal principles surrounding defamation. The Company will pursue all available legal avenues to ensure that these defamatory statements are retracted and that
those responsible are held accountable.
Oando PLC demands the immediate removal of all libelous content from the offending platforms. Failure to comply will result in legal action, including claims for damages and other remedies provided by law.
The company reaffirms its dedication to its mission and its stakeholders, and it will continue to act with integrity in all its endeavors.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur