BY Olalekan Fakoyejo
The federal high court, Lagos division, has adjourned the hearing of the scheme of arrangement relating to the proposed acquisition of Oando’s minority shares.
A scheme of arrangement is a court-approved process between a company and its shareholders, which will alter the rights or liabilities of the shareholders. It also requires shareholders’ approval and other regulators to take effect.
Minority shareholders had petitioned the court in March 2021 to compel either Oando or the core investor, Ocean and Oil Development Partners Limited (OODP), to buy them out.
OODP agreed to acquire the entire shares of the petitioners at the average price of N7.07 per share after the minority investors requested their shares be bought at a valuation to be established pursuant to the order of the court.
Also, the minority shareholders said the shares can be acquired at the average price of Oando’s share price on the Nigerian Exchange Limited (NGX) for a period of three months prior to the date of the court’s order in 2021.
Updating the stock market about the court decision on Thursday, Oando said the hearing of the petition – which was meant to have the company present its scheme of arrangement – was adjourned to November 28, 2023.
Oando said: “The adjournment to November 28, 2023, is to enable the Company provide a further report of compliance with the Court’s order dated June 7, 2022, which directed the Company to file its Scheme of Arrangement document (the “Scheme Document”) with the Securities and Exchange Commission (SEC) and the NGX within 30 days, among other orders.”
The federal high court adjourned the petition on Tuesday.
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