₦airaland Forum

BabsO2:
What if the delinquent debtor changes mind and not want to part with any Oando PLC shares or the whole lot of shares and say this one wey you hold be for shirt through AGM I go pay back small small or in full. That means no more shares will be distributed but cash will be the way out (if debt paid back in full) or part shares part cash (if debt paid back in part). And the post AGM letter suggest either can happen. Any way it goes the money written off from account books will come back to support the shareholder funds. Do you know if the written off amount is big enough to turn shareholder funds positive if written back ?

You made good points
But in that case, then there should be a publication saying that the debtor has changed his mind and now willing to pay cash instead.
What we were told in clear language is that management directors have reached and approved a firm agreement with the debtor to settle the debts with its shares. Any cash elementz complicate matterz because there was no specific value placed and agreed for each share at the AGM.

ositadima1:
It is done and dusted; the shareholders have already voted in favor of the resolution. The big man even explained that other shareholders will go from 42% to 65%, and the majority shareholder from 23% to 35% or so. This gives more power to the minority, hence his mention that the takeover will not work after this.

They will not pay money, and if they do, who will inherit the shares? This would mean the management still has the intention to buy out.

Designking will get his 2.5 million guaranteed. 👍

Correct. Absolutely!

megawealth01:
....

I just hope Oando will just stick to the share redistribution and ignore the cash payment option. Because the management or interested parties could use their influence (assuming) to get some market players to deliberately push the price lower e.g. N50 and pay cash to shareholders at that value, and then they mop up all the shares in the market again
Where would Oando get about N300b to pay sef?

designking:
This is what my stock broker just sent me about the Oando bonus or reward.

If is it true that shareholders actually expressed preference for cash payment, then it shows how shareholders could sometimes undermine their own interest.
What was the value or price that was agreed or placed on each share?
So what happens if Oando management adopts a particular value per share to pay cash to the shareholders and then the share price on the NGX jumps higher the following day or week?

designking:
Because of you, I go go buy the 20,000 units I initially plan adding...Your confidence dey encourage me.

But I hope Wale no go shame us.... This whole thing look too easy but I am surprised the market is not seeing this huge short term returns.

If you refused or failed to believe or trust Wale and Oando management after resolutions have been passed at a statutorily santioned AGM, but you now change your mind because of what you read on this forum in a minute, then you must have some perculiar issue.
The wind blows for a second and your mind changes up and down with the wind! Incredible!

Raider76:
Oando will not go into exploration, which is costly and risky. They prefer buying ready made assets, or buying cheap government assets.

I think Oando is already an Exploration and Production (E&P) company. That is why they have OPL and OML licenses.
The companies they acquired (Conoco Phillips and ENI/NAOC) were big time E&P companies.

The new oil blocks were won by some companies that are even smaller than Oando.

Virtually all the upstream companies are into E&P, although they may be doing partnerships or joint explorations with other major companies in order to minimize their risks and costs

Sunrisepebble:
I’ve never understood this “more” expensive thing before, is it because with smaller share prices you get more units which gives the illusion of greater gains? 500k in Oando and 500k in Aradel is the same exact thing if they both move up by 10%, regardless of number of units held.

I had friends who I marketed Aradel to everyday from #5k pre-split and they didn’t buy because it was also “too expensive” but they later bought at the split price of #517 (#10k), not knowing they’d have got more units buying it at #5k

All other things being equal, the cheaper the price of a stocks, the more affordable it becomes for investors to buy, and the higher the likelihood of it returning higher percentage in price appreciation or margins.
E.g. it is easier for Oando at N5 to increase to N50 (ten fold) than for N50 to increase to N500.
That is why some investors go for penny stocks;

Sunrisepebble:
Seems as if Oando has the hearts of many here. When the AGIP deal was announced I saw the way analysis full here even down to the Okpai power plant. Now I want to know Aradel's true valuation with this acquisition and nobody to analyse for me wey no sabi book

Many more people were able to go into Oando because it was selling cheap for a very long time e.g. N5-N20
Aradel was more expensive, hence fewer people were able to buy; This partly explains the difference in the passion that both stocks generate here on NL, aside the controversies' about Oando's connections to the govt of the day.

jideflash:
https://www.thisdaylive.com/index.php/2024/12/19/totalenergies-mrs-sifax-first-ep-sahara-others-win-oil-blocs-as-dangote-crashes-petrol-price-undermining-imports/

Thank God Oando was not listed among them! The noise would have been..............!

Raider76:
I think to say "massive sell-off " is an over exaggeration.

But for me, I think the way they drafted the AGM decision on the share redistribution in the Corporate Action announcement yesterday generated some uncertainties. As a result people don't know whether to buy, sell or hold.

Hopely, they will follow quickly with clearer statement of how it will be implemented, giving clear dates and share allocation ratios.

I am suspecting and anticipating be a clandestine rush for Oando shares a few days before they announce the dates.
You can mark this!

Raider76:
Don't forget NNPCL belongs to the government. They can slash theirs by 50% and it will not affect their personal pockets, as it is government's money. Dangote cannot win a price war with them.

Theoretically speaking you are correct.
But this is a government that has demonized subsidy and made it look as if it is a crime for petrol to be sold cheap for citizens to buy.
It will be interesting to see how NNPCL would be able to go into a price war with Alhaji and bring down the price of petrol to around N700 per liter after they had arm-twisted him and manipulated the petrol price to as high as N1,200 per liter.

megawealth01:
You won't really blame anyone... Remember na Wale we are talking about here. People still doubt if he don truly change?

The AGM was held just 2 days ago, for God's sake

lionshare:
NNPC should drop price to N800 lets see market forces at play to the benefit of Nigerians.

Alhaji will still beat them on price because of economies of scale.

megawealth01:
Dangote Slashes Petrol Price To ₦‎899 Per Litre


https://dailytrust.com/breaking-dangote-slashes-petrol-price-to-n899-per-litre/

Good.
Alhaji may spoil market for NNPCL and make them go bankrupt if they don't stop their attacks on his refinery.

chimex38:
They disclosed it to NGx, they expanciated on it a little at the AGM.
why won't they do it?
at leaset benefit of doubt for the next few months..


People still have hope on the Dangote Food Merger despite delay for almost 2yrs now.
Sugar was on sub-20 with good FA as at May 2023 I think.
Sugar is now on 30sth with bad FA and SHF wiped out.

Oando own never reach 1week
Doubt don enter.
They need a lot of cooperate Branding and image to rebuild alongside.

A public announcement was made, resolutions have been passed at a publicly-held AGM with statutory regulatory bodies in attendance who have copies of the resolutions passed, further announcements of the resolutions have been published, and yet some people are still doubting and saying it may not be true! My goodness!

It is too typical of most Nigerians. Most Nigerians suspect everybody and don't trust anyone. Probably because of bad past experiences, citizens' lack of self-integrity, the dubious nature, lack of trust, mischief, ignorance, lack of education etc.

megawealth01:
Which sell off? OANDO has gained my confidence for now

You are now fully welcome to the Oando Club.
Your annual subscription fee is due; please pay soonest or you could lose your membership!

designking:
But Aradel is posting positive share growth for days now.

If truly investors believe that they will truly get a 'share bonus' of even 1:3, they would have jumped in.

They are not seeing how realistic this share redistribution thing is... Even Oando has not provided any clarity on this hence market reaction has been uninteresting

You should be able to understand the difference between the possible impact of making a declaration that there will be bonus of a specific ratio (e.g. 1:2) and saying that minority shareholdings will increase from 42% to 65%. The increase in percentage is a technical jargon which most people in the market are yet to fully understand. It is only a few people who really understand the meaning or implication of that information. And you should be able to decode that, instead of saying that the market does not have confidence.
Don't be surprised to see some heavy deals in Oando a few days before they eventually announce the date(s).

designking:
The details of the share redistribution is sketchy hence the market is still experiencing selloff of the Oando shares.

The market reaction is a testament of lack of trust or confidence in any possible share redistribution. Though I am going to buy more Oando, it is a gamble I am willing to take.

Don't be quick to jump to hasty conclusions.
This Xmas/New Year period has been usually bearish since time immemorial.
The Oando shareholders that attended the AGM are part of the ''market'' and they expressed confidence and trust in the share redistribution by adopting the resolution.

O ye stubborn generation, when will you ever have a change of heart and believe Daddy wa, the father figure?

Raider76:
It is sad that a government is fighting it's best businessman.

They see the success story of Dangite Refinery as a potential embarrassment for the govt because of their failures in refixing the nation's refineries , hence they are trying everything to downplay and possibly undermine the achievements of Dangote Refinery.

Raider76:
Aradel

The FGN is desperate for funds, and will push all the indigenous oil companies to ramp up all possible sources of crude oil production. Seplat, Oando, Aradel etc will all do well in their operations and on NGX

GeeKudi:
I would even prefer they delay the announcement of the new qualification date so that these impatient investors can bring down the price for those who know the true value of what is coming to load more.

Once the management has published the information and AGM resolution has adopted it, they would have to implement it within the shortest possible time. I guess Oando management wanted to use it to compensate shareholders for the Xmas/new year season, hence the announcement at this time of the year.
People holding Oando must know its value potentials by now. 2025 will be very loud

RodgersAkpafu:
This is absolute bollocks
Even the gulf countries still trade on hard currency in exchange for their minerals
Nigerian Naira has never been a functional currency, is not a functional currency, and will never be a functional currency
So these jokers have to stop this clown act

Only eight functional/convertible currencies exists
USD | EUR | GBP | CHF | HKD | AUD | CAD | JPY

if your currencies are not any of the above, then this silly move is a pipe dream

Dummies everywhere

Don't mind the clueless drunkards in the so called NASS

Raider76:
Ok. So one is bonus and the other share redistribution. But the point being discussed is only one regarding the likely effect on SP when minority shareholders are suddenly given. what appears to be free shares, which they may dump on the market. This is the same in both cases.

In the case of a bonus, the share price would be marked-down (reduced) automatically by the NGX, to adjust for the effect of the bonus ratio.
In the case of shares redistribution, there will not be any reduction in the share price by NGX because there are no new shares being issued.
As per people rushing to sell their shares, you cannot do anything about that. The tendency is always there in the market. You just have to wait and decide when to sell your own shares at the price that you want.

designking:
Until he fulfills the share redistribution process, it is still all talks no motion.

You are still not believing Daddy wa? The father figure?
You must be very stubborn

Raider76:
But paying in installments doubles the cost and wahala of doing this. Those that want to sell will always sell. Just recently UCAP did it, and there wasn't any sustained rush to sell. I think these amendments were the wish of the management.

There won't be any paying in installments. No cash will be paid.
The company will only announce the qualifying date, and dates for closure/update of register of shareholders.
If you qualify, your additional shares will be credited to your CSCS/CHN account once and for all.

Raider76:
Yes. This "shares or cash equivalent " and "dates to be determined from time to time" get ebi oo.

You don't have to worry about the clause ''shares or cash equivalent''. That is a standard clause or language that is used when communicating this kind of resolution. Every company uses the same clause when they want to distribute bonus shares. Cash payments can only be for dividends.
Oando does not even have the cash to pay right now and they specifically stated ''shares redistribution'' in the notice of AGM and it was confirmed and passed at the AGM. So no cash payment at all.

I think the dates will be announced soonest.

Raider76:
It's the qualification date that is the koko. If it had already passed yesterday, no rally.

It seems the qualification date has not been fixed yet, going by Oando's ''Corporate Actions'' publication dated today 18-Dec-2024

designking:
Wale is a father figure...

Lol
But you were bashing Oando management just yesterday, and praising Seplat and Aradel instead.
Will you ask father Wale for forgiveness now?

megawealth01:
I dey follow the money my dear. I'm online for the money that's why I usually ignore a lot of people here. I follow Wale fire for fire because he gat what I came online for

Okay, if you follow am, then I go follow the two of you join together.

You've got the right kind of mind for making money in the market.

designking:
The market response today will tell.

Don't expect any huge response from the market.
The new developments in Oando would only reflect in the market price after some time. It will not be immediate.
The normal price fluctuations will happen but those who appreciate the new developments will key in for long term benefits. The market usually sheds price during Dec/Jan window

megawealth01:
Wale said "distribution" na Wale I follow nobi any other person. He even said he go dey share us billions yearly

You dey follow Wale ke?
I still feel like I am dreaming!
It is the same Wale ooooo ...... the same Guy man, Cowboy, Gangster, Rambo man, Game player, etc.
Be careful ooo....that is my sincere advice if you still wan to follow am

Raider76:
Thanks Sis. I new that the bonus isn't going to cause any dilution as no new shares will be created. Just wanted to pin the guy who made the post saying it is "dilutive". Some people like making careless and emotional statements that lead others to lose money.

In fairness, I think the word ''bonus'' being used by people is the cause of the confusion.
The word ''bonus'' ordinarily would mean a dilution; the reason the company itself has been using the term ''share redistribution'', and has avoided using the word ''bonus''.
Share redistribution simply means that pre-existing shares are being withdrawn from some shareholder(s) and redistributed to other shareholders, therefore no increment in the total number of shares.
However, the recipients of the redistributed shares will have higher percentage stake in the ownership going forward.