Nigerian oil tycoon Wale Tinubu makes bold move: Investment firm launches bid to take Oando private

Ocean and Oil Development Partners Limited (OODP) an investment company majority owned by Nigerian oil tycoon Wale Tinubu, has revealed plans to take Oando Plc private in a bid to place the oil-producing and marketing company on the path of growth following extended legal battles.

Oando has been a listed company on the Nigerian Exchange since 1992.

In November 2005, under the guidance of Wale Tinubu, Oando shares were listed on the Johannesburg Stock Exchange (JSE), making it the first African company to have a cross-border listing.

In pursuit of complete ownership of the integrated energy company, OODP, the core shareholder, has initiated a strategic plan to acquire all outstanding shares held by minority shareholders.

Qualified shareholders will receive N7.07 ($0.0153) in cash or an equivalent amount in South African Rand for each ordinary share held at the Effective Date of the Scheme.

By offering a scheme consideration that is 58 percent higher than the last traded share price of Oando on March 28, 2023 — the day prior to the submission of the scheme application to the Securities and Exchange Commission (SEC) — OODP is seeking complete ownership of the integrated energy company.

This will ultimately result in the delisting of Oando’s shares from both the Nigerian Exchange and the Johannesburg Stock Exchange.

Tinubu, the CEO of Oando, serves as a non-executive director at OODP and holds a 66.7-percent stake in the company, while his deputy, Omamofe Boyo, who is also a non-executive director at OODP, owns the remaining 33.3 percent

OODP’s recent move comes just 24 hours after Oando announced a profit of N34.73 billion ($75.4 million) for its 2021 fiscal year, which ended on Dec. 31, 2021.

This marks a significant improvement from the previous year’s loss of N140.67 billion ($305.6 million), despite experiencing production declines due to facility shut-ins for maintenance, repairs, and sabotage incidents.

The impressive financial performance can be attributed to a 105-percent increase in the realized average crude oil price, which rose from $34.21 per barrel to $70.12 per barrel, and a 40-percent increase in natural gas prices, which led to a 51-percent increase in the group’s revenue from N477.07 billion to N722.45 billion.