Oando Plc (NGX: OANDO) has announced the distribution of 1.28 billion ordinary shares of the company to its shareholders.
Also read: OANDO PLC reports N220 billion profit amid N4.1 trillion revenue for FY 2024
The share distribution approval was given by shareholders at the Annual General Meeting held on 17 December 2024, and it’s details contained in Annual Consolidated and Separated Financial Statements of the company released on Tuesday.
Shareholders approved a restructuring which culminates into a distribution of all or part of the existing shares received from Ocean & Oil Development Partners Limited (OODP) as repayment of loan due to the Company, to shareholders on a pro-rata basis.
On 5 February 2025, Oando Plc notified the Nigerian Exchange Limited and the public that the distribution of the shares will be in two tranches in its first phase.
The total number of existing ordinary shares returned is 4,279,042,282, while Oando Plc’s total number of issued shares is 12,,431,412,481.
1,283,712,601 shares will be distributed in the first phase, with 641,856,301 being distributed in both Tranche 1 and Tranche 2.
For the first tranche under phase 1, the 641,856,301 existing shares will be distributed on the basis of 1 new ordinary shares of 50 kobo each for every 12 ordinary shares held by members at the qualifying date of 14 February 2025.
The qualification date for the second tranche will be 30 June 2025, and the distribution ratio will be determined and approved by the board in due course. The distribution will be effected upon receipt of relevant regulatory approvals and within 36 months commencing 30 January 2025.
At the 45th Annual General Meeting of Oando Plc held in December 2024, shareholders approved a resolution for a financial restructuring of the company. The resolution called for:
- Debt Transfer and Modification: That the repayment of long-term receivables owed to the Company’s subsidiaries by related entities be accelerated and novated to the Company, to consolidate receivables within the Group and improve financial clarity and management.
- Debt-To-Equity Swap and Settlement: That the Company accepts Shares as settlement for the debts owed to. It by the borrowers, further to sub-resolution (A) above, thereby reducing overall receivables and enhancing financing clarity.
- Distribution: That the Company may cause shares received pursuant to sub-resolution (B) above, and/or the cash equivalent, to be distributed to its shareholders on record at date(s) as may be determined by the Board of Directors prior to any distribution, from time to time, on a pro-rata basis.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
