Oando Plc has held an Extraordinary General Meeting
(EGM) to address the company’s capital reduction for the financial year ended
December 31, 2024.
The meeting, held on August 12, 2025, came after the
company’s 46th Annual General Meeting (AGM) earlier the same day, where
shareholders approved both ordinary and special business matters.
According to a disclosure filed on the Nigerian
Exchange (NGX), the EGM was convened in line with Section 137 of the Companies
and Allied Matters Act 2020 to deliberate on measures to resolve the capital
reduction.
?500 Billion Capital Raise Approved
Shareholders gave the green light to a major capital-raising initiative
proposed by the board, authorizing the company to increase its share capital by
up to ?500 billion. The plan includes issuing up to 10 billion ordinary shares
of 50 kobo each, either as a standalone offering or as part of a broader
fundraising programme.
The fundraising could take the form of public
offerings, private placements, rights issues, or debt-to-equity conversions,
with the final structure to be determined by the board based on market
conditions and valuation assessments.
Debt-to-Equity Conversion and $1.5 Billion
Financing Programme
As part of the broader restructuring effort, shareholders also approved a plan
to convert $300 million of Oando’s existing $375 million Reserve-Based Lending
(RBL) debt into equity, under terms to be set by the Directors.
Additionally, the board secured approval to establish
a $1.5 billion multi-instrument financing programme, or its naira equivalent,
to enhance fundraising flexibility. This programme will include instruments
such as bonds, certificates, and other securities, issued at the board’s
discretion.
Background
The capital-raising move was first announced in July 2025, with Oando stating
that the fresh funds would be sourced from either Nigerian or international
capital markets, depending on shareholder approval. The initiatives are aimed
at strengthening the company’s balance sheet, improving liquidity, and
positioning it for long-term growth.
With both the EGM and AGM approvals now secured, Oando
is set to move forward with its capital restructuring and fundraising agenda.
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