Shareholders of Oando Plc have given approval to a comprehensive capital raising and restructuring plan worth up to ₦500bn, alongside the conversion of $300m in existing debt to equity, as part of efforts to strengthen the company’s financial position and drive long-term growth.
The resolutions were passed at the company’s 46th Annual General Meeting (AGM), in compliance with the Companies and Allied Matters Act (CAMA) 2020. Under the approved plan, Oando is authorised to raise additional capital through the issuance of up to 10 billion ordinary shares of 50 kobo each in the Nigerian and/or international capital markets.
The capital raise may be executed via public offerings, private placements, rights issues, debt-to-equity conversions, or other transaction structures, with pricing determined through book building or other acceptable valuation methods, subject to regulatory approvals.
In a major debt restructuring move, shareholders also sanctioned the Board’s proposal to convert up to $300m from the company’s existing Reserves-Based Lending (RBL) debt into equity.
The initiative is expected to reduce the firm’s leverage, improve its balance sheet, and position Oando for greater operational flexibility in executing its strategic objectives.
The meeting further approved the establishment of a multi-instrument issuance programme valued at up to $1.5bn or its naira equivalent.
This programme will allow Oando to issue bonds, certificates, and other debt or equity instruments in phases, with terms and timing determined by the Board in line with prevailing market conditions and subject to necessary regulatory consents.
Shareholders also endorsed provisions for the company to accept surplus funds arising from oversubscriptions in any capital raising programme, as well as the authority for the Board to enter into agreements, appoint advisers, and take all other necessary steps to implement the approved initiatives.
Additionally, the AGM granted approval to increase the company’s issued share capital by the specific number of new shares required for the capital raising programmes, including any oversubscriptions. The Board was also authorised to cancel any unallotted shares created for such purposes.
Following the completion of the capital raise, the company’s Memorandum and Articles of Association will be amended to reflect its new issued share capital.
Oando noted that the capital injection and debt swap form part of a broader strategy to strengthen its capital base, enhance shareholder value, and position the company to take advantage of growth opportunities in Nigeria’s and Africa’s energy markets.
