Stakeholders Endorse Oando's Offer
By Uche Obike
Stakeholders yesterday in Lagos, unanimously endorsed the Oando's Offer. At the stakeholders' forum were very distinguished shareholders were eager to consolidate their positions in the company. In addition, were the company's working partners, financiers, fund managers and investment advisers, and some other distinguished Nigerians.
The doyen of the accounting profession in Nigeria, Mr. Akintola Williams expressed confidence in the ability of the board and management of the company. He urged investors to invest in the company because "Oando is good and the price Offer is reasonable."
Also, the Group Managing Director/Chief Executive Officer of First Bank of Nigeria Plc (FBN), Mr. Jacobs Moyo Ajekigbe said he was impressed by the impressive performance of the company. According to him, the company's board of directors is very good with an efficient management team that is experienced and proactive.
He added the company has a very solid asset base and urged the investing public to invest in Oando's because it is a good investment. Ajekigbe noted that the presence of the doyen of the accounting profession in Nigeria, Williams at the forum was an indication of sanity and probity about the company.
All the speakers at the forum recommended highly the shares of Oando the investing public.
Oando will today commence the process of raising N5 billion from the capital market through a combined rights issue and offer for subscription.
The company is offering by way of rights of 20,384,957 ordinary shares of 50 kobo each at N95 per share to existing shareholders, in addition to offer for subscription of 31,419,785 ordinary shares of 50 kobo each at N97.50 per share to the public.
Both offers will today, August 27, 2004. The public offer closes on September 24, 2004, while the offer by way of rights closes on October 6, 2004.
The issuing house for both offers is FCMB Capital Markets. The company explained that the proceeds of the combined offer would be channeled towards achieving Oando's growth objectives and restructuring of its existing finances.
Oando also planned to use the proceeds of the offer to fund working capital and to execute the following strategic projects:
Refinancing of its investment in Gaslink Nigeria Limited Calabar Terminal and Jetty
Building of small terminals in Calabar.
Refinancing of its investment in Gaslink Nigeria Limited.
Calabar Terminal and Jetty.
Building of small terminals in Calabar. . Apapa Terminal
Construction of additional storage tanks, repair of roads and street lighting as well as the modernization of Environmental, Health and Safety Equipment in the Terminal.
Port Harcourt Terminal
Expansion of storage facility, construction of pipeline and installation of fire hydrant system.
Lubes and Specialties
API pit and fire hose to improve the Environmental, Health and Safety standards at the Warri LPG Plant.
Bitumen Plant Port Harcourt
Provide equipment for cleaning and ensuring Environmental, Health and Safety compliance.
Kaduna Lube Plant
Expansion of the plant equipment by installing automatic capping and labeling machine.
Expansion of Lagos facilities and commencement of aviation services in Port Harcourt.
Also, the company planned to further enhance its networking and communications system by purchasing and implementing an Enterprise Business Application.
It could be recalled that Oando announced projection of over N216 billion revenue to be achieved by 2008.
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