₦airaland Forum

Wahala

Omooloriredade:
Q3 is coming up. Hopefully we see the NAOC acquisition effect in full force. I believe this is the market expectation. Deal completed within the quarter, so it should be included.

I'm not sure why a lot here were waiting so eagerly for the audited 2023 results. Were they expecting a marked improvement from the unaudited one?

The good thing is that audited 2023, Q1 and Q2 have been released and they were .......erm! The market sent the price from N90 to N60.
N55 to N60 seems to be a floor until the next FA event (the release of Q3 result). IF the NAOC acquisition reflects positively, I am (as do many here) inclined to think the SP will go on a run. Ah! I don't know o.

Omooloriredade:
Q3 is coming up. Hopefully we see the NAOC acquisition effect in full force. I believe this is the market expectation. Deal completed within the quarter, so it should be included.

I'm not sure why a lot here were waiting so eagerly for the audited 2023 results. Were they expecting a marked improvement from the unaudited one?

The good thing is that audited 2023, Q1 and Q2 have been released and they were .......erm! The market sent the price from N90 to N60.
N55 to N60 seems to be a floor until the next FA event (the release of Q3 result). IF the NAOC acquisition reflects positively, I am (as do many here) inclined to think the SP will go on a run. Ah! I don't know o.

Could Aradel drop today be related to an entity dropping Aradel to enter Oando. Maybe unrelated.

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?

I just got message from someone that aradel also paid him today. Note that he just opened the account this year and had not filled any form for edividend mandate

BullBearMkt:
...your pro-statement followed immediately by safe guarding-statement need to be studied

Wetin man for do na?

bovali:
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?

Looks more like this closure of register is only to determine who is eligible to attend the AGM and vote.

Omooloriredade:
Wetin man for do na?

You dey try jor! Kantinue!!!

This is not related to stock but I really want to know if companies in oil and gas sector exports natural gas in Nigeria.

Bizibi:
This is not related to stock but I really want to know if companies in oil and gas sector exports natural gas in Nigeria.

Nigeria exports natural gas as LNG from Bonny NLNG that is supplied natural gas by many companies of which Oando is a supplier

Seplat want to go into LNG for exports with the Mobil assets but all their gas sales are currently to domestic customers. I think same applies to Aradel

Bizibi:
This is not related to stock but I really want to know if companies in oil and gas sector exports natural gas in Nigeria.

BabsO2:
Nigeria exports natural gas as LNG from Bonny NLNG that is supplied by natural gas by many companies of which Oando is a supplier

is there any other company apart from oando

bovali:
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?

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).

Sunrisepebble:
Seplat want to go into LNG for exports with the Mobil assets but all their gas sales are currently to domestic customers. I think same applies to Aradel

the whole thing looks like a government stuff,we tried going through government channel but man corruption in Nigeria is now a culture.i nor fit talk.... anyway thank you.

Bizibi:
is there any other company apart from oando

Total follow join and companies that have bought some Shell assets. Plus Shell through some assets not yet sold.

BabsO2:
Total follow join and companies that have bought some Shell assets. Plus Shell through some assets not yet sold.

okay thank you. Someone who was in government in past told me about nipco exporting gas.

Intercompany payable and receivable

I repeat most transactions there are money stolen by MD and his trusted Directors. The more you look the less you see.

Ire ooo!

@designking
Thanks for that comprehensive breakdown of OANDO's AGM agenda and the beautiful outlook....😊
Seems I was able to interprete it to certain points too...

Can you pls post the link...
Thanks

Now, what we should be searching for are the companies owing.....😊

Who else is looking for a perfect time to Jump into ARADEL. I wish it can do 401 again.

Locotrader:
From the little information I am getting,
Japaul might go for mandatory takeover hence the accumulations.When the free float is less than 20%,there aim will be achieved.
I will advice any Japaul holder to wait for the battle of delisting or mandatory takeover.

Ok. Thanks for the info.
Will be on the lookout.

It's here we're talking about all these now, when e dey happen, they'll start asking if it's good to buy.
* Any risk taker should just have Japaul and OANDO in his/her portfolio for now, even if it's small quantities or with the amount you can risk**

400 or below would be good but hard to predict if it would dip to that level. So, gradual acquisition may be the game to play.

bastardson:
Who else is looking for a perfect time to Jump into ARADEL. I wish it can do 401 again.

Omooloriredade:
It is impossicant. It won't happen. NNPC will never cede shares to Oando or settle debt owed (if any) to Oando in shares.

Also, NNPC can not be classified as a related entity so NNPC is out of the equation in my opinion.

The pool of likely related entities is quite a large one. It's too much work to list them here but if you comb through the annual report you will see the possible culprits there. Debt owed is about N215B.

Disclaimer - I have been wrong many times before but this is my own understanding. Please note that the flag I'm raising here is white, not red nor green. Money can still be made and lost. It is the market afterall.

But Oando own all these related parties either directly or indirectly. In most (if not all) the companies Oando own 100% so what debt is being settled with shares? are these so called debt not suppose to be intercompany which is in and out and of no effect upon consolidation

Ojt don come with mago mago again

Thank you for saying it better. He would understand these admonitions with TIME.

Sunrisepebble:
Honestly I see both sides of this coin. We are all here to make money, so no harm in pointing out certain stocks and answering his question directly. However, although it might seem harsh at first glance, in pointing him to education, that person will be much better off in the long run as a human being and an investor. If you really want to make money, education will take you much farther because you will learn how to discern and spot opportunities. And when you reach that point where you know what you're doing, you will get it right most of the time.

bovali:
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?

If the Oando resolutions are passed on Dec 17, they would only apply to members whose names appear in the register as at commencement of business on 27 Nov 2024, (which is co-terminus with close of business on date of the publication 26 Nov 2024). This effectively ensures that the publication does not have any serious or prolonged effect on price movement on the floor.

.

.

The effective date is the date of "the passing of this resolution" and not the date of the publication of its proposal.

mikeapollo:
If the Oando resolutions are passed on Dec 17, they would only apply to members whose names appear in the register as at commencement of business on 27 Nov 2024, (which is co-terminus with close of business on date of the publication 26 Nov 2024). This effectively ensures that the publication does not have any serious or prolonged effect on price movement on the floor.

[quote author=GeeKudi post=133059938][/quote]It seems my explanation was wrong. You may add your perspective

Agbalowomeri:
Some pullbacks expected this week and next in preparation for the Christmas bull

Happy trading/investing

Market generally bearish just as predicted.....
Looking forward to next week or the next......

GeeKudi:
The effective date is the date of "the passing of this resolution" and not the date of the publication of its proposal.

Okay, thanks.
So what is the effect of the closure of register of members from Nov 27 to Nov 29?

robobo:
But Oando own all these related parties either directly or indirectly. In most (if not all) the companies Oando own 100% so what debt is being settled with shares? are these so called debt not suppose to be intercompany which is in and out and of no effect upon consolidation

Ojt don come with mago mago again

Maybe not mago mago but giving something back to long suffering shareholders. As he cannot deliver dividends right now he wants to share some other guddies perhaps

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.

The receivable is the power plant which Oando share of ownership has a carrying value of 193billion and they are due to receive a buyout in 2025, hence the timing for this resolution. It has nothing to do with NNPC.