Agbalowomeri:

U wan buy market from e-spirit?

natruetalk:

to buy oando no be problem now. have we factor the possibility of future share reconstruction

Dexterax: Abeg make una no dey shorten evilspirit name.

It's EVILSPIRIT! Not e-spirit.

Mpeace: Why should Oando even consider reconstruction? They might have alot of outstanding shares but its nowhere near those of Transcorp, and most of our banks, Yet none of them is talking of reconstruction. In any case, I think any post-cop reconstruction of oando shares would have a positive effect on its share price. Reconstruction of a company's shares is not always a bad thing, provided the company has good prospects, in which case there would always be lesser offer at the floor of NSE than in pre-reconstruction era. Most people don't really know the actual implication of the COP purchase in terms of annual profit. My only fear is with transcorp and elections. I know alot of our politicians have huge stakes in this company and might sell to finance election primaries. My fear is not whether but when to buy more of transcorp. If I were sure of an election induced fall in price, I would wait for that fall. If not its to buy before their oil stuff starts.

4dchairman: Transcorp elevated to HOLD.

Elai147:

Are you trying to tell us exchanging debt for equity will not lead to an increase in shares outstanding? How is this possible?

Elai147:

This is the last known number of shares outstanding. By the time the deal is sealed and if there are further conversions of debt to equity, we will know the real amount of outstanding shares and the extent of dilution caused.

zendi:

You no worry about transcorp wey get 40b shares, e come be oando with tasere 8b. You no see dangcem with 17b shares de do fine. When we get near the bridge we go begin talk of how to cross am. Most of us na chronic speculators. We somersault with the market as situation warrants.

Btw, if they're sharp, and announce cop deal asap, they'll do the rights issue at a much higher price, occasioning minimal dilution.

Elai147:

This is the last known number of shares outstanding. By the time the deal is sealed and if there are further conversions of debt to equity, we will know the real amount of outstanding shares and the extent of dilution caused.

Mpeace: Why should Oando even consider reconstruction? They might have alot of outstanding shares but its nowhere near those of Transcorp, and most of our banks, Yet none of them is talking of reconstruction. In any case, I think any post-cop reconstruction of oando shares would have a positive effect on its share price. Reconstruction of a company's shares is not always a bad thing, provided the company has good prospects, in which case there would always be lesser offer at the floor of NSE than in pre-reconstruction era. Most people don't really know the actual implication of the COP purchase in terms of annual profit. My only fear is with transcorp and elections. I know alot of our politicians have huge stakes in this company and might sell to finance election primaries. My fear is not whether but when to buy more of transcorp. If I were sure of an election induced fall in price, I would wait for that fall. If not its to buy before their oil stuff starts.

Mpeace: Why should Oando even consider reconstruction? They might have alot of outstanding shares but its nowhere near those of Transcorp, and most of our banks, Yet none of them is talking of reconstruction. In any case, I think any post-cop reconstruction of oando shares would have a positive effect on its share price. Reconstruction of a company's shares is not always a bad thing , provided the company has good prospects, in which case there would always be lesser offer at the floor of NSE than in pre-reconstruction era. Most people don't really know the actual implication of the COP purchase in terms of annual profit. My only fear is with transcorp and elections. I know alot of our politicians have huge stakes in this company and might sell to finance election primaries. My fear is not whether but when to buy more of transcorp. If I were sure of an election induced fall in price, I would wait for that fall. If not its to buy before their oil stuff starts.

mercylicious: Transcoorp fit close for 5:50, anyway, am muving it to long term things

austinibe7777: the creditors of OER are oando plc, local and international banks. local and int banks have provided about US$800 MILLION towards a deal of US$1.65B while oer and oando plc provided the rest which is almost 50:50 debt equity ratio. majority of the equity provided by oer was loan from oando plc which oando plc converted to equity. Now tell me after the deal, is it the loan from the banks that will be converted to equity? No. that is why oando plc will raise N50B via right to reduce the bank debt and to raise this N50B after cop, do u think they will sell more than 2Billion shares?

Elai147:

The probability of Transcorp doing share reconstruction is much higher but the fact still remains that Oando has a high number of share outstanding (and increasing). I am not anti-Oando but the truth need to be said for the sake of naive investors who may require these information when doing due diligence. You cannot compare the share outstanding of a banking stock to that of a stock in the Oil and Gas sector. Check the outstanding shares of the other stocks in that sector and you will know why Oando has a high outstanding number of shares. Reconstruction can sometimes be favourable but how many favourable share reconstructions have we had in the NSE?

Elai147:

The probability of Transcorp doing share reconstruction is much higher but the fact still remains that Oando has a high number of share outstanding (and increasing). I am not anti-Oando but the truth need to be said for the sake of naive investors who may require these information when doing due diligence. You cannot compare the share outstanding of a banking stock to that of a stock in the Oil and Gas sector. Check the outstanding shares of the other stocks in that sector and you will know why Oando has a high outstanding number of shares. Reconstruction can sometimes be favourable but how many favourable share reconstructions have we had in the NSE?

myjoy08:

Sincerely, i think the issue of Oando's doing share reconstruction is out of the way. There is no reasons or immediate reasons attached to it. A company with less than 9 billion outstanding shares with many upside potentials and assets acquisition compare to other company of its caliber. I will suggest will move to a very lucrative topics. God bless!

austinibe7777: the creditors of OER are oando plc, local and international banks. local and int banks have provided about US$800 MILLION towards a deal of US$1.65B while oer and oando plc provided the rest which is almost 50:50 debt equity ratio. majority of the equity provided by oer was loan from oando plc which oando plc converted to equity. Now tell me after the deal, is it the loan from the banks that will be converted to equity? No. that is why oando plc will raise N50B via right to reduce the bank debt and to raise this N50B after cop, do u think they will sell more than 2Billion shares?

austinibe7777:

my brother we are talking facts and figures here. whether pro-oando or anti oando just keep it aside. try to study the difference between OER and Oando plc. Oando plc is not traded in canada. wale is not the MD/CEO of OER. am not really a good teach to explain this well. oando plc shares are different from OER shares. OER is one of the companies that will greatly increase the bottom line of oando plc. eg transcorp is one of the companies that will great;y increase the bottom line of heirs holdings ltd

bigass: The main down side of a company with hight outstanding shares is inability to declare bonus shares and low EPS. Seplat has 500 million shares compared to Oandos 9 billion shares

Elai147:

Yes it will be in the range of 2 - 2.5 Billion shares but this will increase the number of shares outstanding.

Mpeace: It would not lead to increase in outstanding shares. It is called ''arrangement and compromise'' or in extreme cases,''takeover'' in corporate law. In this case, I suspect its a takeover ie Oando is now the new owner of OER. They simply bought it with the loan they gave to OER. It doesn't add to outstanding shares but simply increases the value(ie share to asset) of each share.

bigass: The main down side of a company with hight outstanding shares is inability to declare bonus shares and low EPS. Seplat has 500 million shares compared to Oandos 9 billion shares

myjoy08: http://www.cnbcafrica.com/video/?bctid=3690707184001

The outcome of MPC meetings...