Oando Plc is renewing moves to list its downstream subsidiary, Oando Marketing Limited (OML), as a separate entity on the Nigerian Stock Exchange (NSE). This follows the approval given by Oando Plc shareholders at the annual general meeting held in Lagos last Monday.
In 2011, Oando had received the approval of the Nigerian Stock Exchange to list OML in the fourth quarter of 2011. However, the planned listing was shelved due to prevailing market conditions.
Oando Plc is now making fresh moves to list OML. Such a listing would enable investors to more effectively perform comparisons of OML with its peers in the petroleum marketing sector of the Nigerian Stock Exchange.
On Monday, Oando Plc shareholders renewed their approval for OML’s listing, authorizing the directors to “reorganize and/or divest any and/or all of the company’s shareholding and investments in the downstream business by way of sale, transfer and/or any other form of disposition which the directors resolve to be in the best interest of the company subject to the approvals of relevant regulatory authorities.”
Speaking on OML’s planned listing, Group Chief Executive Officer of Oando Plc, Mr. Wale Tinubu said: “Oando downstream operations will be listed on the NSE, in which Oando Plc will still remain a shareholder of the company and will control the operations; but will invite other shareholders who are seeking exposure to the downstream. This will allow us to take some of the cash in the downstream to invest in the midstream and upstream where returns are better.”
Source: This Day Live