Oando Fails To Settle Minority Shareholders 18 Months After Court Order

Oando Plc has again failed to obtain approval for the Scheme of Arrangement document from the Securities and Exchange Commission and the Nigerian Exchange Limited (NGX) which will enable Ocean and Oil Development Partners Ltd to pay off the minority shareholders of Oando.

The company admitted on Wednesday that its failure to file the document has led to the adjournment of the hearing on the petition filed on March 25, 2021, by Venus Construction Company Limited and 13 other minority shareholders to February 5, 2024.

Oando said, “The adjournment to February 5, 2024, is to enable a further report of compliance with the Court’s order dated June 7, 2022, directing the company to file its Scheme of Arrangement document with the Securities and Exchange Commission (SEC) and the NGX within 30 days, among other orders.”

Venus Construction and the 13 other shareholders of Oando holding a total of 299,257,869 shares in 2021 obtained a court order compelling OODP or Oando to buyout of their entire shareholding.

Oando responded by agreeing to buyout the 299,257,869 shares which led to a court order on June 7, 2023, for Oando to prepare within 30 days a scheme document for the purchase of all the minority shares in Oando Plc for submission to the SEC and NGX.

On October 18, 2022, the Federal High Court Lagos granted a further extension of 90 days and the petition adjourned to January 26, 2023 for the report of compliance.

Oando announced a scheme in March 2023 under which the shareholders will be entitled to receive the sum of N7.07 in cash or its equivalent in South African Rand (ZAR) and disclosed plans to delist from the NGX.

The company said it applied for the SEC’s ‘No Objection’ to the proposed scheme. The case hearing of the petition was adjourned to October 10, 2023.

The petition was further adjourned to November 28, 2023, to “enable the company provide a further report of compliance with the Court’s order dated June 7, 2022.”