Key shareholders of Oando Plc have thrown their weight behind the ongoing Rights Issue and advised other investors to take advantage of the offer to increase their holdings so as to reap the benefits of the huge investments the integrated energy group has made over the years.
The company is shopping for N54.6 billion from existing shareholders through a rights issue of 4.548 billion ordinary shares at N12 per share. The offer opened December 28, 2012 and is expected to close on February 8, 2013.
Speaking on the issue, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said shareholders should take up their rights.
"Shareholders should embrace the shares as a future stock. The company has made good investments in the energy sector and very soon the benefits will begin to manifest. The Right Issue, is therefore, an opportunity to buy more shares and wait for the returns that would come from those investments," he said.
According to Nwosu, while the management of the company strives to make right investments, governments' policies have not really helped in realising the benefits of some of those investments as quickly as expected.
"I believe that going forward, Oando's performance will improve significantly. My plea to the Federal Government is that it should have the political will do take some decisions that would make investments in the oil sector profitable. The issue of subsidy removal, for instance, should be addressed once and for all," he said.
Also speaking, the President of Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, noted that the price of the issue is very attractive, considering the assets and future prospects of the company.
"As you are aware, Oando Plc has huge assets in the energy sector. It operations were only affected by the challenges in the environment. But I believe the bad times are over. The company has a very bright future and I have so much confidence in the business they are into. The price of N12 for the offer is an opportunity no shareholders should miss. The shareholders should take up their rights and increase their holdings," Adesiyan said.