Oando Plc will this Monday delist its foreign-listed subsidiary, Oando Energy Resources (OER) Inc, after buying over shares of minority shareholders. OER is listed on the Toronto Stock Exchange and it currently has a broad suite of producing, development and exploration assets in the Gulf of Guinea, predominantly in Nigeria.
Under the privately arranged transaction, Oando E&P Holdings Limited, a private company incorporated under the laws of the Province of British Columbia as a wholly-owned subsidiary of Oando Plc, acquired all of the issued and outstanding common shares of OER held by minority shareholders. The transaction excluded shares held by management shareholders and institutional shareholders such as Oando Plc, M1 Petroleum Ltd., West African Investment Ltd. and Southern Star Shipping Company Inc.
The shares were purchased at cash consideration of $1.20 per minority share. Oando Plc, either directly or indirectly, holds 746,107,838 of the common shares, representing approximately 93.7 per cent of the issued and outstanding common shares immediately prior to completion of the going private transaction.
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As part of the transaction, Oando E & P Holdings also acquired all of the common shares held either directly or indirectly by the institutional shareholders, Oando Plc and management shareholder in consideration for such number of shares of the purchaser as reflects the number of their contributed common shares for the purposes of completing the transactions contemplated by the Plan of Arrangement.
With the completion of the Plan of Arrangement, it is expected that the common shares of the OER will be delisted from the Toronto Stock Exchange at the close of business on May 16, 2016.
Chief executive officer, Oando Energy Resources, Pade Durotoye said the completion of this transaction brought the company to another pivotal point in its journey as OER.
“We listed this organisation on the TSX in July 2012 and have enjoyed the benefits of being a listed company in this jurisdiction, having always conformed to the highest reporting and corporate governance standards of the exchange. However, as a result of the downturn being experienced in the global resource market and the current dip in investor interest in the sector, we have decided to delist our entity in line with cost saving strategies to optimize shareholder value. We retain the option of a future listing whenever we believe there is a more conducive market,” Durotoye said.”
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