Oando Plc is the largest integrated energy solution group in Sub-Saharan Africa with primary and secondary listings on the Nigerian Stock Exchange (NSE) and Johannesburg Stock Exchange (JSE). Oando was registered as an external company in South Africa on November 01, 2005 and on November 25, 2005 became the first African company to accomplish a cross-border inward listing on the JSE. In 2007, the company undertook a corporate restructuring in which it carved out its downstream petroleum marketing business into Oando Marketing Limited, a new wholly-owned subsidiary. The company also acquired Ocean & Oil Investments Limited (OOI’s) entire holding in jointly-owned subsidiaries via a Scheme of Arrangement, making these companies wholly-owned subsidiaries of Oando.

In July 2012, Oando completed a Reverse Takeover (“RTO”) involving the former Exile Resources Inc. to become Oando Energy Resources Inc. (“OER”). The RTO was preceded by the restructuring of Oando’s shareholding in certain entities in the upstream exploration and production division of Oando and transferring same to Exile Resources Inc.

On December 20, 2012, Oando announced that its subsidiary Oando Energy Resources entered into agreements with ConocoPhillips to acquire its entire business interests in Nigeria for a total cash consideration of US$1.79bn plus customary adjustments. The deal is stated to be finalized around March 2013. This is part of the company’s strategic move to enter into the high profit margin upstream oil industry in Nigeria.

Oando’s business is organized into six divisions operating in the downstream, mid-stream and upstream industries. The divisions are marketing, supply & trading, terminal & logistics, gas & power, energy services, and exploration & production.

Oando is currently in the capital market to raise the sum of N54.58bn via a Rights Issue. The Rights Issue is on the basis of 2 new ordinary shares for every 1 ordinary share held as at the close of business on October 19, 2012. The Rights Issue is a critical step for Oando towards the execution of its strategic expansion plans; optimising its balance sheet and improving its leverage position. The net issue proceeds, estimated at N52.9bn after deducting the total cost of the Issue, will be applied as follows:
·N27.8bn - Part-repayment of N60bn syndicated loan to fund the acquisition of upstream assets and swamp drilling rigs.
·N23.7bn - Part financing of acquisition of upstream and mid-stream assets
·N1.5bn - Investment in working capital, to support increased level of business

Valuation
In arriving at a fair value for the ordinary shares of Oando Plc post Rights Issue, we used the forecast of the company as contained in the Rights Circular. We considered the following factors in arriving at the forecasts we used for the valuation:
· Strategy to increase its presence in midstream and upstream where there is opportunity for higher margins
· Passage of the oil and gas industry reform
· Macro and social economies stability in the country

Applying a Relative Valuation method to derive the value of ordinary shares of Oando, we arrived at a fair value of N19.12 per share. The current market value of Oando share is N14.40 while the Rights Issue price is N12.00. This means that the Rights were offered to shareholders at a discount to the market price while the market price is also trading at a discount to our fair value. On the basis of this, we recommend that existing shareholders take up their rights or trade it on the floors of the NSE and JSE.
http://proshareng.com/news/19182/FSDH-Research-gives-Buy-rating-for-Oando-Rights-Issue
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CAN U BUY THE STOCK? IS #13 NOW?

ihedioramma: CAN U BUY THE STOCK? IS #13 NOW?

The stock is supposed to be on technical suspension, but is not placed on it. Why ?

supereagle:
The stock is supposed to be on technical suspension, but is not placed on it. Why ?

I ASK U? IF U ARE TO BUY STOCKS TODAY WILL OANDO BE AMONG THE STOCKS U WILL BUY? IS THERE ANY PROBLEM WITH OANDO?