Oando Plc has announced that a new major investor, Leaf Investment & Realtors Limited, has acquired 15.83percent of its shares.
In a regulatory filing on Monday at the Nigerian Exchange Limited (NGX), the oil firm disclosed that the deal represents 1,968,452,614 units of its shares previously owned by Alhaji Dahiru Mangal.
The statement reads: “In accordance with Rule 17:13 (a) of the Nigerian Exchange Limited Issuers’ Rules, we hereby announce the acquisition of Alhaji Dahiru Mangal’s interest of 1,968,452,614, shares in Oando PLC by Leaf Investment & Realtors Limited.
“Based on the above, Leaf Investment & Realtors Limited now holds 15.83 percent of Oando plc.”
Mangal had about four year ago, petitioned the apex capital market regulator, the Securities and Exchange Commission (SEC), accusing Oando Plc of gross financial misconduct.
The agency had conducted investigation into the allegations and established gross abuse of corporate governance and a series of manipulations and financial management in Oando Plc.
The alleged infractions included breach of the SEC Code of Corporate Governance; Breach of ISA 2007 on Disposal of Oando Exploration & Production Limited (OEPL) by Oando Plc 2013; Breach of ISA 2007: Misstatements in the 2013 and 2014 Audited financial statement of Oando Plc arising from the OEPL transaction; Breach of ISA on Misleading Information contained in Oando Plc’s 2014 Rights Issue Circular; Breach of SEC Rules and Regulations on Payment of Dividends; and the Auditor’s doubt over the ability of Oando to continue as a Going Concern.
Consequently, SEC suspended the Wale Tinubu -led Oando from the stock exchange and ordered a forensic audit of its activities.
Following the intervention of the former Central Bank of Nigeria governor, a – one time Emir of Kano, Alhaji Muhammadu Sanusi II and some other well meaning Nigerians, Mangal and the management of Oando resolved their impasse and resorted to out- of – court settlement of the matter. Mangal was allowed to appoint a director on the board of the oil firm.
In July, SEC had announced that it has entered into settlement with Oando after the firm approached it for a settlement of the matter.
Below is the official statement from the Securities and Exchange Commission (SEC) on the settlement with Oando Plc;
Pursuant to the powers conferred on the Securities and Exchange Commission (the Commission) by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the Commission on Thursday, July 15, 2021, entered into a Settlement with Oando Plc (the Company).
The Commission in its letter to the Company dated May 31, 2019, gave certain directives and imposed sanctions on the Company, following investigations conducted pursuant to two petitions filed with the Commission in 2017.
The Company and some of its affected directors had challenged the said directives in a series of suits commenced at the Federal High Court. However, the Company subsequently approached the Commission for a settlement of the matter, and both parties have now agreed to settle in consideration of:
- the impact that a further prolonged period of litigation would have on the Company’s shareholders and the value of their investments.
- remedial measures to be put in place by the Company in enhancing its corporate governance practices and strengthening its internal control environment.
In the overriding interest of the shareholders of the Company and the capital market, the Company has reached a settlement with the Commission, without accepting or denying liability, on the following terms amongst others:
- Immediate withdrawal of all legal actions filed by the Company and all affected directors;
- Payment of a monetary sum;
- An undertaking by the Company to implement corporate governance improvements;
- Submission by the Company of quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
“The Commission reiterates its commitment to ensuring the fairness, transparency and integrity of the capital market, and uphold its mandate to protect investors”, the statement added.