₦airaland Forum

If they are willing to pay this much for this then how much would the Chinese pay for Waco?

https://x.com/bloombergafrica/status/1863154028307165690?s=46&t=S-fB0C8yRxjxeCDpRFi4rw

Correction: it’s actually Wapco being sold for 1bn usd

Very disappointed. See what we are wasting pages on? This hot afternoon? Please lets stop derailing the thread.

Omooloriredade:
The 27/11 to 29/11 closure does not affect the special resolution regarding the distribution of shares. Register will be reopened after 29/11. It may because the company needs to send out notices, proxy forms etc.

However, if you are interested in the share distribution, then you gotta be a shareholder on the day the resolution is passed which is the AGM day (assuming shareholders vote in favour of the deal). Also note that shareholders will not be alloted the shares on this date. It may well be months after so it won't matter if you sold after this date (same way dividends are administered).

Thanks

Omooloriredade:
No be attack o. Just an opinion which has no bearing on how the market will react to the news. So here goes:

What is huge? Make we know first. The information in that annoucement is slightly insufficient to make a sound investment judgement. There's not enough meat on the bone.

Resolution 3 Summary:

* Related entities owe Oando subsidiaries in the course of doing business together.
* A special resolution is being proposed to have the debt owed transferred to Oando the parent company.
* Debt due date will be brought forward and renegotiated (with or without modifications).
* Further to above, Oando is proposing to have the debt settled by accepting shares in the debtor entities (i.e Debt for equity swap deal).
* The debt for equity swap is intended to help reduce the overall Trade receivables (not payables o) at the group level.
* Shares allocated from the debt to equity conversion is then distributed to existing shareholders of Oando on a pro rata-basis.

Questions:

1. Who are the related entities owing Oando subsidiaries?
2. What is the status of the financial health of these entities?
3. Why are they unable to settle their debt as and when due?
4. Trade receivables are revenue owed to a company from the sale of goods and services. Is buying shares in these onigbese companies the best use of company resources?
5. Can Oando reveal the related entities and if possible provide a brief summary of their financials so shareholders can make informed decisions before voting on these resolutions?
6. Would it be better to instigate an asset sale by these entities and the proceeds used to settle Oando loans or Trade payables?
7. Do these related entities pay dividend?
8. If not, are they listed on the NASD or NGX to provide an exit platform for shareholders should they decide to leave? Or at least convert their own portion of the shares to cash. Don't give me something I can't monetise.
9. Oando has quite a number of subsidiaries and related entities. Which ones are we talking about here?
10. Bonus question - Is there a subsidiary or related entity Wale and Boyo are not shareholders of? Hmm, Wale why are you not paying up for for good and services rendered?

Positive:

1. If the related entities are Asset rich but just suffering a temporary cash crunch.
2. Deal is done at favourable valuation for Oando shareholders i.e entity shares are not overpriced at conversion.
3. OODP (Wale and Boyo) will not be voting. Outcome lies solely in the hands of minority holders (same as the delisting in case anyone didn't know that).
4. Huge positive - converting trade receivables to shares in an asset rich company and transferring same to existing shareholders could be the company rewarding existing shareholders. Basically, the company is proposing to pay out a portion of its income to shareholders. A dividend of some sort. In a way, Question #4 could be a blessing even though Oando still needs to address its huge debt too.
5. Qualification date for this distribution is the date the resolution is passed. Note this one. 17/12.
6. The directors might be seeing light at the end of the tunnel, hence their decision to go this route. Otherwise, it shouldn't be the near-term course of action. Settle your own gbese first before thinking of rewarding shareholders (that is if it's a reward o. It might well be a curse especially if it could have been better spent for the overall good of the company and to reap the reward latter).

Disclaimer - My 2 kobo. My post could be grossly misleading so please DYOR. Not a recommendation to buy or sell Oando.

Quite insightful, thanks. Does the closure of register affect any of the resolutions? Or would it be the resolution date of 17/12 for qualification?

chimex38:
haaa. Na delist ?

If you pay attention, you would know they have been on it for a while. We are just quick to forget. Current market cap is 250bn but Etuh, Danjuma acquire Notore Chemical for $150m (262.5bn at 1750). https://businessday.ng/news/article/etuh-danjuma-acquire-notore-chemical-for-150m/

All this after eroding shareholder equity.

Chikacha:
Then I will go back and kiss my bag of MOVR.

Just trying to point out that DOT is one of those ones that are written off...which means it may melt faces.
People are even now laughing at ETH holders.

ETH finally waking up. I hope its not fake out, been accumulating

GRACEGLORY:
We're not all gamblers

You're using Juju

jonnysessy:
Bovali, I join you to smile at your updated portfolio. This will serve as an encouragement to some of us. I also congratulate you on your expedition with Oando. It goes to show you can make good money on the NGX even without having fundamentally sound stocks. I also love the mix in your portfolio, I think it is diversified to an extent. But, I just want to find out from you, do you have anything against Banks. I can only see that you have Access.

The other thing I see here is consistency. If one I sure of a company. Increase your stakes because the more you sow, the more you reap.

I don’t have anything against other banks, but from a value perspective, I think Access was the most undervalued at the time so I went in big. How many of the banks holdcos have pension and insurance funds. Correct me if I’m wrong, but wasn’t arm pensions the second largest? Also from an income perspective, none of the other banks make as much as access, it’s just efficiency that’s their problem which I can understand in the early days as most of the bank acquisitions they did, they were forced to retain the staff by the regulators. Give them time, max 2 years and the story would be different. Same with Aiico (only one doing share buy back when others are trying to raise funds), same with Transcorp (how can it be valued at 440bn when power and hotel are both worth collectively 3.8 trillion. Not to even talk of Transcorp net revenue almost at par with its valuation on an annualised basis). I just even remembered, access bank net revenue as at q3 is more than its market cap lol. So, just buy fundamentals and leave the rest to Mr. Time

ositadima1:
Stop lying. You know you didn’t make 300 million from Oando. You’re not even a woman. Just like you flaunted the portfolio, you would have shown us proof of this 300-million 'loot.' I challenge you to show us your legs—if they aren’t as hairy as a goat’s.


Maybe you made 40 or 50 million like everyone else, but definitely not 300 million. And as for that other person who gets high on cow dung [IamS...], I’m warning you—mind your own business.

I have nothing to prove to you to be honest . I should dox myself?

mikeapollo:
Congrats. And thanks for the various analyses and your sincerity this time around.
But it is interesting that you made so much from Oando.
I recall I was one of the people trying to convince you about Oando's prospects when it was still struggling to cross the N16 mark; and you said you had sold all your Oando units after making some 40% gain.
Well, I am also waiting to make my kill in Oando. My target is 10 digits, and will hopeful hit that mark very soon.

Yes, you're correct. But then it pulled pack to the 30 naira levels which i saw started acting as support so i quickly loaded up again. From a TA point of view, i only buy back on retest of new supports which was meant to be 16 but it just get going higher till it reached like 45. My plan was to average in like 10m daily, so I used my available cash to quickly buy the dip. I can hold for 5 years so wasn't too bothered at the time. I would have just kept averaging down.

megawealth01:
My paddy in the crypto space. Hope you are doing well?

Billionaires no dey make noise you know?

I just dey laugh that guy since. He now lied that they banned his account. He couldn't even come out to face me. You know I don't like nonsense

bovali:
I think I'm gonna be posting a snapshot of my portfolio at the start of each quarter cause that was the second b2b quarter of 40%+ returns. Also because streetinvestor is always mocking me for not dropping advise. That being said, i will never recommend anyone to invest in what i don't have stake in. DD advised as always.
Side note: I'm still upcoming so don't laugh at my portfolio. I have 45m in cash that i will use to average down if needed.

Just been looking at my updated portfolio and been smiling since. Please who sells house in Ikoyi? . Oando alone gave me 300m+ which i have sold and put in fixed income. Will be using the interest to follow loco in his Jijo till I find any better fundamentals. Christmas will be good this year.

Sunrisepebble:
It is but this sudden increase, did people just finally digest the result. A source even just asked if anything is going on. Its now at 50...

There is nothing sudden about this

bovali:

Used this Saturday to revisit the market ahead of q4 and there’s a lot of money to be made next quarter

GRACEGLORY:
I've been reading from iLegendd for years, right from when I started my crypto journey. Yes, he writes many, and plenty, but it would only take those that likes to read and enjoy reading to actually capture the life lessons in his articles, I understand many of us don't like or have the time to read longs stuffs so some stops along the way. But to be honest, iLegendd got his stuffs.

And his personal life is his personal life, let's leave his personal life alone...

iLegendd is somebody I hold in high respect, and on this thread, I'll always place him above myself.

One of my life principles: Never allow your brother be put down just because it's your winning season. iLegendd has always won before I had a win.

Please, let's stop the critism, else, I'd be discouraged. Remove iLegendd from this thread, and we have nothing.

Wasn't even having any beef with him. He had over 40 likes. He could have chosen peace and posted what he promised but instead out of the only 2 shares (one of which i did after he already got his 20 likes as a joke) he focused on my own like. Seemed a bit unfair to me and an attack on my character. Then he proceeded to call me a man. I have no issue with him, just found it funny. I won't derail the thread further out of respect to you as I don't even want to put you in the middle. I apologise if my share was taken out of context. I always say I am not here to sell anything in case he thinks I am trying to steal his market. Me I am on nairaland for info and cruise. He has never seen me troll anyone so I don't know why he would call me out in such a negative way. My last post on this matter even if he responds. Love and light

GRACEGLORY:
1:05pm On Jun 23, 2023

You're a legend to be honest

A good weekend read:
https://files.constantcontact.com/14a6173b701/c8b566aa-db87-437d-9323-a5515e07ee91.pdf

bovali:
Na wa o, small play. Share if you want to share, if you don't want to share don't tease. I'm not even going to bother explaining myself lmao. I was the second to click share after you already got all the likes you needed. Yes I am a boy hiding under f lmao.

I understand this thread now. Ilegend says a lot without really saying anything. If you want to make money, follow Graceglory. I have said it here before thankfully. Everyday, legend is learning something new that cannot be applied in the real world. If you really understand the market you will know that past performance is no guarantee of future. But whatever grace is doing really has grace cause at least he makes calls, and back it with facts. Legends own is to come and be doing multiply by 5.3 add 16k minus 7k without any call at the end. And yes, I do not make crypto calls, i know where my own strength lies and it would be my last response on this. Only mega wealth knows me on this thread. I don't have time for long talk. If you want to help us Legend, like you say, drop your calls or drop your book, leave plenty english. I challenge anyone that has benefitted from the plenty english to come and show us how they are applying it in real life. Its not by journalling past you will see future. What if Kamala had won instead of Trump, no be so so english we for dey see for here? Rest please. Any small thing, like if you want me to share . P.s. I regret going on your handle cause what type of topics are these. focus please. This is why you can't tell men apart from women. Porn has confused you

iLegendd:
I noticed the people that do the kind of things you do are the ones that hate you the most, especially if you shine brighter than them or people appreciate your posts more.

I said I'll expose a secret if I get 20 likes, but I won't if I get 5 shares. This boy, hiding under (f) was among the people that shared the comment so that I won't post it.

Why? He posts long comments about stock and cryptocurrency like me on Nairaland, but people don't really recognize him, so he's not happy with me. He's here laughing with everybody, but he doesn't want the progress of others.

Na wa o, small play. Share if you want to share, if you don't want to share don't tease. I'm not even going to bother explaining myself lmao. I was the second to click share after you already got all the likes you needed. Yes I am a boy hiding under f lmao.

Zegra:
I came across information stating that WHT will not be deducted.

Please share if you can

Agbalowomeri:
People were even buying GSK higher than the stipulated price. You think every buyer knows the reason for the bull?😂😂😂

Fair enough

Sunrisepebble:
Finalized at 86. Just got confirmation

Correct me if i am wrong, but if it is confirmed at 86, would there be any point buying above 77.4 naira as thats the base once you remove WHT from the 86. Unless there is a chance they push the price further? I'm confused because you said finalized at 86, so i am guessing they already have shareholders approval to proceed?

GRACEGLORY:
Shib and doge have better ROI

Even with the current pump?

KarlTom:
MODIFIED

OandO. -0.08%
ETERNA. ±
ARADEL. ±

Oando (JSE) +66.67%

GRACEGLORY:
Ovii123

Last cycle, $DOGE hit $88.8 billion MC & $SHIB hit $40 billion.

I'll rather leverage on Shib, rather than buying few hundreds of doge @$100 I'll buy a million Shib @$24 to convert to perhaps, a 1k,10k,or even 100K doge later.

What are your thoughts on TOMI please?

megawealth01:
I've always been here bro

I've come to join you . Silent reader

bovali:
https://proshare.co/articles/oandos-minority-shareholders-seek-clarity-and-proper-governance-on-outstanding-delisting-plans?menu=Market&classification=Read&category=Stock%20%26%20Analyst%20Updates

This is hilarious:
https://x.com/sweeegu/status/1855943178408407200?s=46&t=S-fB0C8yRxjxeCDpRFi4rw

https://proshare.co/articles/oandos-minority-shareholders-seek-clarity-and-proper-governance-on-outstanding-delisting-plans?menu=Market&classification=Read&category=Stock%20%26%20Analyst%20Updates

A good evening read:
https://files.constantcontact.com/14a6173b701/25092ef2-877c-4640-9cff-b5279ec29e29.pdf

bovali:
Key takeaway: They are not delisting

Current Equity Talks and Debt Management:

• Equity Raising: The company has indicated that it is in active discussions with potential equity investors. This step is part of its broader plan to bridge the funding shortfall that remains after debt refinancing. Management has noted that these equity injections are crucial for covering approximately 46.4% of the funding gap that will not be resolved through debt restructuring alone.
• Debt Refinancing: While refinancing existing debt is a significant part of Oando’s strategy, this alone is expected to address only about 53.6% of the funding gap for the fiscal year ending December 2024. The success and timing of these equity talks are crucial, as delays or failures could significantly impact the company’s financial health and ability to continue as a going concern.

My Opinion o. High Level Summary:
Active Engagement With Equity Investors
- [ ] Equity Injection Plan: The company has plans for equity raising through strategic investors to provide a much-needed boost to its capital base. Management has indicated that agreements with potential equity partners are under negotiation, but they remain cautiously optimistic about the timeline and outcomes of these talks. They plan to leverage these potential capital injections to maintain liquidity and avoid disruptions to operations

Debt and Liability Management:

- [ ] Medium-Term Loan (MTL) Renegotiation: Oando successfully renegotiated its MTL to include an 18-month moratorium and a revised four-year repayment schedule. This restructuring was aimed at easing immediate repayment pressures and stabilizing the company’s cash flow. The settlement of outstanding interest and fees by October 27, 2024, is a key condition to avoiding default.
- [ ] Debt Structuring and Pledges: Oando has pledged various security interests as part of its debt agreements, including a fixed and floating charge on assets. This move reinforces lender confidence and aligns with the company’s strategy to secure refinancing
- [ ] High Finance Costs: Finance costs remain a significant burden, contributing to a net finance cost of N116.5 billion in 2023. This increase from N81.6 billion in 2022 underscores the impact of high-interest borrowings

Strategic Acquisitions and Investments:

- [ ] Acquisition of NAOC Working Interest: Oando completed the acquisition of Nigerian Agip Oil Company’s (NAOC) working interest in OML 60 – 63. This acquisition is part of its upstream growth strategy and has implications for increased revenue and asset base
- [ ] Deferred Payment Structure: The company also secured a share purchase agreement for a 55% equity stake in Lakel Afrik Petroleum Limited, featuring a deferred payment model. This strategic investment aims to support future growth while managing current cash outflows

Going Concern and Financial Sustainability:

- [ ] Material Uncertainty: The financial statement highlights significant doubt regarding Oando’s ability to continue as a going concern due to its negative equity, consistent net losses, and a working capital deficit projected to reach N3 trillion by year-end 2024
- [ ] Planned Funding Solutions: To address these challenges, management plans to complete an equity raise and issue bonds totaling N1.5 trillion. This funding is crucial to bridging the projected funding gap and supporting ongoing operations

Observed Financial and Operational Performance:

- [ ] Revenue Growth: Revenue has shown a substantial increase to N2.85 trillion in 2023 from N1.99 trillion in 2022, attributed to improved trading and upstream operations
- [ ] Operating Profit: The operating profit rose sharply to N218.3 billion in 2023, signaling better operational efficiencies compared to N20.6 billion in 2022
- [ ] Net Loss Position: Despite increased revenues and operating profits, net losses widened to N216.2 billion in 2023 from N41.7 billion in 2022, largely due to rising finance costs and accrued liabilities

Improvement Areas:

- [ ] Debt Management: Continued focus on restructuring and reducing finance costs is essential to ensure sustainable profitability and financial health.
- [ ] Equity Strategy Execution: The successful conclusion of equity discussions and securing investor commitments will be pivotal in restoring financial stability.
- [ ] Cost Optimization: Enhanced cost management, particularly related to interest-bearing debt, will aid in reducing financial strain

My 2 cents (On the issue of going concern, if they were going to fail, lenders would not be approving new loans or agree to restructure . See the bigger picture ❤️&💡