ByÂ Peter Egwuatu
Shareholders have endorsed the resolution by the board of directors of Oando Plc to raise additional capital ofÂ N200 billion in tranches via any method in the financial markets.
The shareholders at the 32nd Annual General Meeting (AGM) held last week in Uyo, Akwa Ibom State also approved the resolution by the board to divest and or transfer up to 49 per cent of the companyâ€™s shareholding in Oando Marketing Limited to any person(s) or entities and in terms and conditions as may be determined by the directors and in accordance with any applicable statutory and or regulatory requirements.
Speaking at the AGM, the trio ofÂ Sir. Sunny Nwosu, National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Mr.Francis Orji and Chief Sola Abodorin that spoke the minds of shareholders, commended the impressive results of the company during the period under review.
According to them, â€œ We commend the board and management of our company for the dividend we are approving today. This shows that we have started benefitting the fruits of our investments.We commend the company on the improved turnover, with N126.36 billion in 2008 , a rise of 75 per cent above 2007 turnover of N72.3 billion. Profit Before Tax (PBT) also witnessed an increase of 56 per cent over previous year, resulting in a rise in Profit After Tax (PAT) to N895.95 million, 54.6 per cent higher than the previous year. We are also thanking the board for the total dividend of N6.00 per share, having earlier received N3.00 per share as interim dividend. We hope that the company will surpass this next year.â€
Speaking at the press conference shortly after the AGM, Group Managing Director/CEO, Oando Plc, Mr.Wale Tinubu, said Oando Marketing Company would be listed on the Nigerian Stock Exchange (NSE) by September 2009.According to him, â€œ The Oando Marketing Limited is the leading oil gas marketing company in the country with over 500 retail outlets and a commercial clients base that cuts across all industry sectors such as manufacturing, construction, oil and gas and telecommunication in Nigeria and West African sub region. The company will stand on its own as a publicly quoted entity that will be listed on the Exchange since the shareholders of Oando has requested that they be considered first during the transferring process of shareholding.
He said â€œ Since the shareholders have approved the resolution to divest 49 per cent we shall at the first tranche list 25 per cent of the shares by way of introduction and give the existing shareholders opportunity to par take in the shareholding ofÂ the newly carved entity, while we shall watch the terrain in the industry before coming out with the balance.â€
While explaining the process of raising the N200 billion additional capital, the Oando boss said, â€œ We shall raise the fund in two tranches. First we will raise N100 billion by way of Bond in the Nigerian capital market and the remaining N100 billion will be source in the international market. This is because we are quoted in the Johannesburg Stock Exchange. So we would be giving our foreign investors opportunity to partake in the fund raising exercise. The N100 billion bond will commence from August to end September. Continuing he said, â€œ We are very confident and optimistic that the N100 billion to be raise by way of Bond would be fully subscribed given the growth of the Pension Fund sector.
The Nigerian Pension Fund is better organised and has generated a lot of money that are of long term in nature. It is this long term fund that we needed since most of our projects are long term in nature.He further explained that the additional fund raising is to enable the company continue its projects, saying, â€œ We would continue with our refinery drive. Oandoâ€™s Refinery and Terminals (OR&T) division is charged with solving the problem of the nationâ€™s long term dependence on imported petroleum products. The companyâ€™s entry into refinery and terminals sector complete our foot prints in all segments of the energy value chain to become Nigeriaâ€™s leading integrated energy solutions
providerâ€Speaking at the AGM, Chairman of Oando Plc, Major General Mohammed Magoro commended the shareholders for their support during the year under review.
In his words â€œ I implore all shareholders and stakeholders to consolidate your numerous share accounts into a single share account to better the efficiency of the operators as well as reduce the costs of operations experienced by quoted companies in the printing and distribution of Accounts and notices, which will increase profits for the company.â€On the future outlook of the company, Magoro said, â€œ I am certain that we have what it takes to surpass our record of achievements.
I am confident that we are prepared to overcome the challenges of the coming year, and we have never been stronger in the midst of challenges of the coming year, and we have never been stronger in the midst of challenges. With the right strategies, operational framework and motivated manpower in place, we are poised to take charge in the years to come.â€