₦airaland Forum

BabsO2:
Yes they have borrowed forex to use for expansion. I noted that earlier in this thread (several pages back). The load of the fx additional tier 1 capital will surely reduce fortunes of common Naira shareholders, especially if the growth they deployed the fx to is currently not yielding fx income. The tier 1 fx instrument holders will always get their returns first in fx before the common shareholders get the left over. And this will tend to reduce the earnings per share to shareholders till their fx assets start bearing fruit. However should their expansions bear good fruit in months and years ahead, common naira shareholders on NGX will reap bountifully. This reward may be round the corner or may be far off who knows? Since management have been acquiring shares perhaps it may not be far off.

customstreet:
1. Closure date was even backdated to 27th July ,2023

2. Shenanigans have started by excluding their unrealized FX gain

3. Access Bank need to be monitored and examined well

4. What is the IFRS treatment of FX realized and unrealized gain or loss?

5. Access likes doing their own different from others

6. No payment date

This is how Oando started few years ago with this type of shenenigans

It is well

mikeapollo:
The Court cannot give any definite order or judgement on the delisting without the minority shareholders voting to decide on the buyout. It can never happen. There are other minority shareholders who must be given the opportunity to decide, otherwise they will also go to court and scuttle the whole process once again. The 14 shareholders cannot represent all millions of minority shareholders and you expect the millions not to express their opinion on the matter through voting.

austinkenneth:
This document is confusing in my opinion.

First it states in section (IV) that:
An order directing that, if at the Court Ordered Meeting of the First Respondent, the Scheme
is approved by a majority representing not less than three-quarters (3/4) in value of the
shares held by the members being present and voting either in person or by proxy, the
reports of the Court-Ordered meetings be presented to the Court within 30 days, for an Order
of this Honourable Court to sanction the Scheme.

This can be interpreted to mean that:
(a) OODP holding 57.4% of the votes will vote yes or no at the EGM meaning delisting is a done deal because they'll vote yes or
(b) OODP holding 57.4% of the votes will not vote yes or no for delisting at the EGM. In this case, the three 'minority' shareholders who hold 74%-57% = 17% will have at least a 40% (17%/42.6% = 40%) of the vote given that all other minority shareholders will not be present. This still represents a high odds for delisting at N7.07.


Secondly, in the last paragraph we have the statement:
Today, OODP has a shareholding of 57.37% in Oando PLC and the above-mentioned minority
shareholders 42.63% shareholding. This action precipitated by the petition from certain Oando
minority shareholders, if approved by all the minority shareholders at the court-ordered meeting
will result in a voluntary delisting of the Company’s shareholding on the NGX in accordance with
its guidelines for delisting of securities

This means ALL! the minority shareholders present must approve the delisting for it to happen. I think someone would come back to tell us that this is not the intention or the spirit of the writers of this doc or the court ( this is now looking like the 25% of Abuja brouhaha )

mikeapollo:
The cross petition filed by Oando and the Court's order for a Scheme of Arrangement do not take away the right of the minority shareholders to vote and decide whether to accept or reject the action of the 14 shareholders.
The minority shareholders will still vote at the EGM to decide the fate of the 14 litigant shareholders before anything else can happen.

mikeapollo:
This is clearly stated in the last paragraph:

Today, OODP has a shareholding of 57.37% in Oando PLC and the above-mentioned minority
shareholders 42.63% shareholding. This action precipitated by the petition from certain Oando
minority shareholders, if approved by all the minority shareholders at the court-ordered meeting
will result in a voluntary delisting of the Company’s shareholding on the NGX in accordance with
its guidelines for delisting of securities .

Iamblessed85:
So the court case of october 10 is just to apprise the court of the status of the scheme of arrangement and not a sanctioning of the move. At what point will the shareholders decide whether or not to agree to the decision? I think in this case, it’s the minority shareholders that count and not the majority.

vacanci:
"Consequently, we confirm that Oando has applied for the SEC’s ‘No Objection’ to the Scheme. Please note that the effectiveness of the Scheme is subject to the approval of the shareholders of Oando at the Court-Ordered Meeting of the Company, as well as the sanction of the Federal High Court. The terms and conditions of the Transaction will be provided in the Scheme Document which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting. If the conditions of the Transaction are satisfied and same is sanctioned by the Federal High Court, the Company will be delisted from NGX and JSE and re-registered as a private company.

https://www.oandoplc.com/press_release/oando-plc-announces-proposed-scheme-of-arrangement/

Streetinvestor2:
Still on conoil agm.what does the audit committee members do and the benefits of being a member.

My reason being that one Prof was the one who mobilised this students to the agm.Some old yoruba guys(no disrespect ment) played him to the game.His men whr outside and reached out to this students before they entered the venue and
offered 1000 each and the Prof lost in the voting
The Prof somehow left them to thr fate as how to get back to school after losing. The whole thing was funny. The guy who won has to start making arrangements and bearing the cost to get them back to school.

mikeapollo:
What you said are mostly correct.
However, all minority shareholders are to vote at the EGM and decide on whether they agree with the 14 shareholders that went to court and requested for the buyout because those 14 litigants claimed they are embarking on the action on behalf of all minority shareholders. Once their action is rejected by the majority of minority shareholders at the EGM, this particular action/buyout issue is dead. But Oando can then start another fresh buyout process but based on different terms if they still want to delist.
The court is trying to ensure that the 14 shareholders are truly acting in the interest and on behalf of all minority shareholders, as they claim in their writ.

Ades1:
Oga mi, most people invested in Oando are not invested because of of Fundamental Analysis(FA), Or Sentimental Analysis(SA) for that matter. Most people are in because of Commonsense Analysis(CA).

I got in N4.40 when the N7 buyout was announced, at that time, N2 gain was my target, as soon as Jagaban was announced as the president elect, I bought a ton more at N4.80 because we all know how things work in this country! Anyways, today, I sold about 30% of my holdings to recoup my investment! You see that 70% left? It is on AutoPilot until something drastic happens. Yes, there is massive risk in Oando, but as long as Jagaban family dey in control, I am in this bus till we get accident!

essentialone:
Request for permission to post long write-up:

INDEPENDENT AUDITOR RAISES CONCERN AS OANDO SINKS FURTHER INTO DEBTS

BDO Professional Services Chartered Accountants, the independent auditor of Oando Plc, has expressed worries over the company’s ability to continue as a going concern.
The company’s liabilities have again exceeded its assets, the auditor said.
The auditor raised its red flag in Oando’s audited annual reports and consolidated financial statements for the year ended December 31, 2021, released on Monday, September 18. It disclosed that the company’s current liabilities exceeded its assets by N237.8 billion, as it reported net current liabilities of N202.4 billion in 2020.
The company also reported net liabilities of N202.2 billion from N174.1 billion in 2020 and a total comprehensive loss of N28.12 billion from N45.31 billion in 2020.
According to financial analysts, when current liabilities exceed current assets, the current ratio will be less than one. In that situation, the company might have problems meeting its short-term obligations. A further look at the audited report showed that the group delivered a sign of recovery, posting a total comprehensive income of N30.6 billion in 2021 from a N132.8 billion loss in 2020.
However, the group’s current liabilities exceeded current assets by N674.8 billion from net current liabilities of N578.2 billion in 2020. The company also reported net liabilities of N129 billion from N67.7 billion in 2020.
Oando Group comprises Oando Trading, Oando Clean Energy, and Oando Energy Resources.
A Nigerian multinational energy company operating in the upstream, midstream and downstream, Oando had suffered a two-year run of losses that began in 2019 when it reported loss after tax of N207.1 billion in 2019 and N140.7 billion in 2020.
The ICIR reported on June 30, 2022, that Oando was on the verge of voluntarily delisting from the capital market due to the enormous losses.
The company had been entangled in a messy shareholder dispute that involved an indirect shareholder, Ansbury Investment Inc., which prompted the Securities and Exchange Commission (SEC) to bar the firm from holding its annual general meetings, making it impossible to release its financials for three years.
At the heart of the conflict were loans granted to the shareholder, which forced Oando to make a colossal impairment allowance that pushed the company into a loss after tax of N207.1 billion in 2019 and N140.7 billion in 2020.
Background to the conflict
In 2017, the SEC received petitions from two shareholders who accused Oando of regulatory infractions, including corporate governance lapses and mismanagement.
Investigating the claim, the SEC sanctioned the group by suspending its AGM in 2018. It even attempted to get the company’s Group Chief Executive, Wale Tinubu, and other affected board members to resign in 2019.
The ICIR reported that Oando could not produce its results for over three years due to the SEC’s suspension of its AGM in 2018.
Negative operating cash flow
Although the group recorded a N30.6 billion profit during the year due to the net reversal of assets impaired in previous years, the company continued to incur losses with negative operating cash flows.
The independent auditor, in its notes, stated that the reversal of this trend was dependent on a successful outcome of its planned actions to refinance its debts to manage the funding gap of N768.1 billion and the attainment of revenues in the group forecast for the year ending December 31, 2023. “As stated in the notes, these conditions, together with other matters, indicate the existence of a material uncertainty that may cast significant doubt on the company’s and the group’s ability to continue as a going concern and, therefore, may be unable to realise its assets and settle its liabilities in the ordinary course of business. “Our opinion is not modified in respect of this matter,” the independent auditor stated in its report signed by Henry Omodigbo for the BDO.
The audited report also revealed that the firm recorded negative operating cash flows of N14.4 billion while the group recorded N38.8 billion, up from N36.2 billion in 2020.
As of the balance sheet date, the group could not achieve payment of the outstanding principal on the medium-term loan of N92.2 billion and the corporate facility of N97.4 billion.
It could not pay its total accrued interest of N65.6 billion and settlement of other net current liabilities (excluding current borrowings and accrued interest) of N315.7 billion.
After the reporting date, the firm has continued to incur significant borrowings, including funding of operations and partial repayment of borrowings.
The group recorded unaudited positive revenue variance in 2022 due to increases in oil prices and higher trading volumes.
However, the independent auditor stated that the increase in revenue did not translate to a corresponding increase in gross margin and positive cash flows from operations.
Consequently, the firm needed help to achieve the planned repayment of outstanding borrowings during the year.
Furthermore, the auditor hinted that the company and group recorded unaudited total comprehensive loss, net current liabilities and net liabilities at the end of 2022.
The group’s outstanding borrowings amounted to N506.7 billion (unaudited), excluding interest as of December 31, 2022, with N402.4 billion out of the N506.7 billion being due within twelve months.
The independent auditor stressed that Oando’s forecast to return to profitability by 2024 highly depended on the stability of crude oil prices within the current range.
It also depends on the Oando’s ability to engage in activities that will increase production volume and intensify security surveillance to arrest crude oil theft.
Production declined by 40% in one year
During Oando’s operations in 2021, its oil production dropped by 40 per cent.
Average production was 26,775 barrels of oil equivalent per day (boe/day) in 2021 compared to 44,550 boe/day in 2020.
Production consisted of 8,849 barrels per day (bbls/day) of crude oil, 1,699 boe/day of natural gas liquids (NGLs) and 97,363 million cubic feet per day (mcf/day) or 16,227 boe/day of natural gas.
Oando blamed the production decreases on shut-ins for repairs, maintenance, and sabotage incidents at the facilities. “Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have since seen progress in security initiatives and are consistently seeking innovative solutions to stabilise our oil and gas production. “Moving forward, we remain committed to driving growth within our upstream and trading businesses whilst simultaneously diversifying our portfolio by investing in non-fossil and climate-friendly energy solutions through Oando Clean Energy Limited,” Tinubu said.

mikeapollo:
Please do not spread wrong information here!
The minority shareholders are NOT projecting to defeat any delisting!
Rather, they are the ones that went to court and requested for a buyout, and Oando is mandated to make an offer based on SEC rules and regulations, and Oando offered N7.07 per share .
The Court then ordered that a special AGM must be held for all individual shareholders to either accept or reject the buyout offer! That is where we are now.

Don't use your own sentiments to spread lies and create mischief here.
Recently you said the buyout had been approved and I challenged you to tell us where and when the AGM was held to approve the buyout.... and you disappeared for more than a week.
Now you are back with another misinformation.!

hayyawithme:
I took mine to Coronation Securities for over eight years now, nothing has been done.

The fact is that their staff that collected the certificate from me is no longer with them. And I left their office without a copy of the certificate as there was no single paper to do a photo copy which I even offered to give them money for copier paper. To think that I traveled all the way from East to Lagos for that is another problem of its own.

newreality:
Good morning Sir.
Plz I am also having issues with a stockbroking firm since last year (sorry please, I don't want to mention their name here or now).
They've not open a CSCS Account for me , I don't get alerts at all even after I severally requested for it, I mostly just get "your request has been executed" as their reply & after some begging, they will send me contract notes which I still find suspicious because it will come weeks after d actual date.

Plz how can I lay complaint with SEC or any agency in charge of stockbrokers as dz one

Thank you Sir

emmanuelewumi:
Customer service reply mails even at midnight. They don't run 24/7, but you can request for your CSCS or cash statement of account, send mail for your sale or purchase mandate at anytime and you will be attended to almost immediately

crownprince2017:
Guys meritrade are trying to scam me, I opened an account with them on Sunday then on monday I wanted to trade but I couldn't fund the account via my account through my dashboard, so I chatted them up and the agent sent me their company accounts to send money, after that she told me that I will see the money soon, after few hours I didn't see the money, I chatted them up again and the other agent said the money I paid is part of the requirements to get my account running then I asked again what is the time frame to get my account running she said 24 to 48hrs the time frame has elapsed no account. so I told them to refund my money to my which I Mailed them regarding that uptil now nothing. I chatted them not quite long the lady first deny the date I sent the money but I forwarded the receipt she now said she wanted to do follow up on my email regarding a refund, after wasting alot of time she said thanks for holding and nothing, after a while she said they are close for the day that till tomorrow again. My 100k is with them, they are not willing to refund the money, I already told them that am not more interested in their services again. Pls advice me.

phoinix:
LOL, I wanted to go through the quarter results to check if these FX gains have been realized or not. But then I thought, if they haven't been realized, how the hell are they sharing excess gains with investors? Where is the money coming from?

Even if they converted these foreign-denominated funds to naira, that would look like crossing into currency speculation business. Yes, that is what it looks like.

So, are banks now currency speculators? LOL.

emmanuelewumi:
I think CBN did the right thing

mikeapollo:
I understand your arguments and line of thinking. It makes some sense to be cautious and not over optimistic
But I am a shareholder and did not authorize or ask those investors to seek for a compulsory buyout on my behalf.
Buyouts should be voluntary. That is why the Court ordered that the shareholders must sanction it at the AGM.
I guess the Court was willing to give more time (about 6 months from March when the case was last heard) to see if things could turn around so that the buyout could die naturally, and that seems to have happened now.
The buyout offer price of N7.07 would have made sense and succeeded about 3 months ago when the share price was around N5.00.
But with the current trend and the ENI acquisition, the buyout offer will die naturally!. No shareholder would accept a buyout for him to make losses. If the OANDO Management offers a higher buyout price and raise it to something reasonable, shareholders may then accept it, and the company can delist
I bought a lot of OANDO when the price was around N5, so I have nothing to lose if I received the offer price of N7.07 (but I will reject the offer at the AGM because I need to make more money from future price appreciation, and most shareholders have similar sentiments)

mikeapollo:
The scenarios are different!

In the case of OANDO, the majority of shareholders will decide at an AGM. Recall that the Management of OANDO did not initiate the buyout process; the buyout was triggered/initiated by some aggrieved shareholders who lost patience due to the protracted issues/battles of OANDO and SEC which affected the share price.
So the Management only obeyed the Court's order to make an offer in response to the buyout option that was instigated by the aggrieved shareholders, but subject to the approval/acceptance of majority of all the shareholders (rather than the majority shareholder).
It is certain that the majority of shareholders will reject the buyout offer at the AGM (most of the deals on the NSE are by informed investors most of whom know the implications).
I will be at the AGM to add my voice to the rejection of the buyout offer!

Look out for OANDO selling at around N150-200 by next year, after the court case!

Redoil:
how much the they sell the last public offer

Mfunkynation:
Am using both, but I prefer Morgan Capital cos of their itrade platform. You can just key in a particular amount you want to invest in a stock press the £ symbol and it will calculate the quantity nd all charges for you which makes it easy. But meristem platform is not so. You have to calculate everything by yourself

phoinix:
Do you mean directly without a broker?

You must trade through a broker. I don't know how third-party brokers (like the fintechs that are not licensed/dealing members of the NGX) operate. If you trade through the likes of Morgan, Meristem, etc (online or analogue), you can buy and sell same day.

When is it applicable?

The buyer's money and seller's money settle 'officially' in T+3days at the brokers' settlement banks. The reason why you are told you will get your proceeds in T+3days. Same period for transfer of the shares at CSCS, even though you can sell before it's 'transfer' is concluded. This lag is an improvement on the old order even though I think with current technology, it can be eliminated.

I don't believe this to be the case, but I'm not arguing.

phoinix:
LOL. You keep recycling the same old belief. Have you tested it yourself to know that what you are saying is true, or are you just echoing what you were told? What I want to know is how he was able to sell the stock the next day. I thought it takes three days for a stock to fully register.

Streetinvestor2:
Nobody is saying anything about gsk.I just saw 13.90 as today closing. Oga customstreet how far.Abeg any update from that side

Streetinvestor2:
The 100 will be possible because it is a new entity being listed. The other three entity I believe will be delisted. It won't be in the form of ordinary name change..

phoinix:
Alright, boss. I was looking at it in terms of ratios. Listing it at 100 naira, as speculated here, will not be feasible from where I see it. It would be tantamount to creating money from thin air. 60 or 70 naira would be more reasonable, even lower.

emmanuelewumi:
Technical suspension won't be more than 2 weeks