Oando gets approval to raise N80b

Shareholders of Oando Nigeria Plc have approved the company’s quest to raise
N80 billion by way of rights issue to existing shareholders.
  The shareholders also approved plan to divest any or all shareholding and investment in the downstream business by way of sale, transfer or any other form of disposition to enhance growth.
  The shareholders, who spoke at the 38th Annual General Meeting of the company held in Lagos yesterday, also authorised the company’s directors to appoint professional advisers and other parties for the transactions.
President of Independent shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu urged the company to do everything within its powers to ‘clean up’ the balance sheet and restore the company to profitability.
Similarly, the President, Progressive Shareholders Association of Nigeria, Boniface Okezie urged the company to divest some of its assets and subsidiaries and concentrate on few that add value to the business.
He added that it would help reduce the indebtedness to banks and boost the working capital.
“Identify the buyers that would do the business in a transparent and accountable manner. There is no need having 100 subsidiaries that are not adding value to the bottomline.”
The Managing Director of the company, Wale Tinubu explained that the company would conclude the divestment of downstream business within the next two years.
He pointed out that the company has continued to execute its strategic plan as outlined in previous years, successfully completing the first segment of the 10 km Greater Lagos Pipeline Ijora – Marina extension, and signed an agreement with an indigenous contractor for the 9km extension of the CHGC pipeline in Port Harcourt, among others.