Leadership (Abuja)
Nkiruka Anene
28 May 2008
Lagos — The capital market is about to witness a historic bumper offer as Oando Plc said plans to float a hybrid offer of $250 million (about N300 billion) from both the local and international market is on the way.
This was disclosed yesterday by the Group managing director of the company, Mr. Wale Tinubu, at the Annual General Meeting held in Lagos.
Tinubu said that the fund from the offer would be used in developing the company's downstream and upstream businesses into a world class facility, while also improving its shareholders value.
He also said that the money when raised will also enable the company play a dominant role in the gas service sector of the economy "gas service station will be located in the same way we are having petrol stations in the country."
Tinubu who said about 300,000 hectares of land have been acquired in Lekki free zone of Lagos State for the building of a local refinery, noted that existing shareholders of the company would be given preferential treatment during the company's offer.
He explained that the 300 billion would translate to 49 per cent divestment of the company's group equity holding earlier being rumored.
Shareholders at the AGM yesterday unanimously commended the company for its impressive result despite a downturn in its turnover volume.
The trio of Chief Adeyemo Oyepeju, Sir sunny Nwosu and Egnr Francis Oji, all leaders of various shareholders groups, said shareholders of the company would always stand by whatever decision the management is taking to grow its fortunes, as it has in the last two years been able to turn the company into a multinational one.
While applauding the company's N6.00 dividend for the financial year, the shareholders noted that all the shareholders of the company support its expansion drive, noting that all this at the end would definitely transform into increase return on investment for shareholders.
Speaking on the company's outlook for the 008 financial years, the chairman, Major General Magoro (rtd) said over the next 12 months the company will be investing a lot of effort in establishing and consolidating all its experience in supply chain management into a new division known as Oando terminal and logistics limited.
He said aside the company expansion of the Lagos third phase gas pipeline expansion project to be completed, that , "we expect to make some strategic acquisitions either from the government or other majors that will underscore our determination to be a successful E&P player in this industry", he added.
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