mikeapollo:


There is nothing personal.
The 5 minority shareholders went to court to challenge and oppose the initial 14 minority shareholders that originally went to court to ask for Oando to buy-out all other minority shareholders. Oando offered to pay N7.07 per share.

The Court then gave judgement (in favour of the 5 shareholders) by telling the 14 minority shareholders that they have no right to ask Oando to acquire the shares of all other minority shareholders who do not want to sell their shares. The Court said all the other minority shareholders cannot be forced to sell their shares.

The Court then said it's earlier order for Oando to submit a Scheme of Arrangement (for the buy-out and delisting) should be limited/restricted to only the shares of the 14 minority shareholders if they still want Oando to buy-out their shares.
The Scheme of Arrangement is the case that is still to come up in future(in October).

So even if Oando is to buy-out any shares right now, it can only buy out the shares of only the 14 minority shareholders that signed the court documents and took the case to court. Other minority shareholders cannot be bought-out for now. That is the judgement of Court.

So the Scheme of Arrangement case coming up (in October) concerns only the 14 minority shareholders. It does not concern the other minority shareholders (like those of us here on NL) who were not party to the case in court.
This has basically destroyed the whole buy-out plan.

ok.you are still repeating my initial stand.That the case of the 14 in court has not ended or determined. Though any judgment from it is no longer weighty on the remaining shareholders.That said the case of the 14 shareholders is still in court. Pls go read back my observation to your initial post on this matter. The finished case is that of second group which is the most important to other shareholders

emmanuelewumi:




Do you know what it means to have a negative shareholders fund?

Return on equity will be negative, Return on Invested Capital will be negative.


As earlier said the company will need to be recapitalized through Right Offer to the tune of over N300 billion.

Having a public offer or special placement might wipe out the current holders

Read my post carefully! I am NOT targeting dividends from Oando. I am targeting capital appreciation from price rally when they release good results!
There can always be price appreciation whether they recapitalize or not. I am also suspecting that they will recapitalize, but that does not detract from my strategy.

Streetinvestor2:
ok.you are still repeating my initial stand.That the case of the 14 in court has not ended or determined. Though any judgment from it is no longer weighty on the remaining shareholders. That said the case of the 14 shareholders is still in court. Pls go read back my observation to your initial post on this matter. The finished case is that of second group which is the most important to other shareholders

I repeat: The request by the 14 minority shareholder for the buy-out of all the shares (which is what concerns all other minority shareholders like myself and people here on NL) has been thrown out. QED!

Why should I be concerned with the other case coming up in (October) if it no longer affects me and my shares and that of all other minority shareholders in Oando? It is no longer material or important

emmanuelewumi:



Wait for the next quarterly result to see if it reducing or increasing. I think it should come positive this year.


That of Oando had been increasing over the past 6 years

Ok, thanks

.

Streetinvestor2:
I equally believe that of oando will be heading north based on the recent buying of agip and hidden businesses,lol.Though I am concerned as per interest associated with the fund for the purchase of that asset. If truely they are presently sitting on 50,000 per day production from what someone shared here then they have a big plus The biggest problem still remains the masquerade as the head of the business. You cannot fully predict what he can do next.If he turns a new leave the negative retained earnings should start improving seriously from 2025 if oil price remains high

The problem is with the recapitalization that can turn 1 million shares to 100k shares.

In order to avoid this shareholders will need to pump in more money, do you think shareholders who have not earned dividends in 8 years will be willing to do that?

That is why insiders and their friends in politics will pump in the required capital injection which will dilute the holdings of the retail investors

emmanuelewumi:



The problem is with the recapitalization that can turn 1 million shares to 100k shares.

In order to avoid this shareholders will need to pump in more money, do you think shareholders who have not earned dividends in 8 years will be willing to do that?

That is why insiders and their friends in politics will pump in the required capital injection which will dilute the holdings of the retail investors

Are you looking for dividend-related gains, or capital appreciation on the NGX and sell off your Oando?
That is what determines whether you should worry too much about dilution of shareholdings due to recapitalization.

emmanuelewumi:



I won't advice you to make it a long term play until the picture is clearer, enjoy the capital appreciation and remember to book profit.

The company will be recapitalized and i won't be surprised if the current holders will own 5% of the recapitalized business

Check out the shareholders fund @ almost negative N200 billion

Please what can make those cowboys sign off that company?

Brief rally in UCAP in the closing period of trading.

Cross deals or Directors...

emmanuelewumi:



I won't advice you to make it a long term play until the picture is clearer, enjoy the capital appreciation and remember to book profit.

The company will be recapitalized and i won't be surprised if the current holders will own 5% of the recapitalized business

Check out the shareholders fund @ almost negative N200 billion

The argument in bold is similar to saying DANGSUGAR will be recapitalized due to negative shareholders funds of N64 billion reported in 2024Q2, Haba. When the company can easily generate money to make the SHF positive in a short while.

NGX has records of companies turning around negative shareholder funds from profit generated from operations without any cash injection from investors. The keyword is a turnaround and the catalyst for it being in place.

mikeapollo:


Are you looking for dividend-related gains, or capital appreciation on the NGX and sell off your Oando?
That is what determines whether you should worry too much about dilution of shareholdings due to recapitalization.

I don't think you understand what I am saying. Prior to capital restructuring there will be a technical suspension, so I don't know where one will get the capital appreciation if one did not book profit.


With current outstanding shares of about 12 billion, it might be compresses to 1 billion and capital raising will be issued for about 10 billion shares.
Hope you understand the type of dilution being referred.


That is why when insiders want to take their company private, I no dey argue with them. I sell and move on. They know how to legally carry out what they have planned to do

Mpeace:
Totalenergies added 41.50 today. Closing at 511.90 a 52wk high.
This one just offset all my loss from transcorp and dang sugar.

some guys no agree me buy small unit to round off my existing unit at #495 and #500.Tomorrow is another day.Th Os is just too small

emmanuelewumi:



I don't think you understand what I am saying. Prior to capital restructuring there will be a technical suspension, so I don't know where one will get the capital appreciation if one did not book profit.


With current outstanding shares of about 12 billion, it might be compresses to 1 billion and capital raising will be issued for about 10 billion shares.
Hope you understand the type of dilution being referred.


That is why when insiders want to take their company private, I no dey argue with them. I sell and move on. They know how to legally carry out what they have planned to do

The rule of technical suspension during public/rights offer does not apply anymore. Go check the banks that are currently doing new subscription/rights offer. Their share prices are still moving up/down on the NGX. For instance, Zenith price closed today at N37.85 on NGX but their current offer price is N36.50k
Same will happen if Oando should do any new offer/rights issue.

Again, do you know the price at which the new/rights offer will be made? What if the price is N50 or N70? Cant I sell and make profit at that time?

BabsO2:


The argument in bold is similar to saying DANGSUGAR will be recapitalized due to negative shareholders funds of N64 billion reported in 2024Q2, Haba. When the company can easily generate money to make the SHF positive in a short while.

NGX has records of companies turning around negative shareholder funds from profit generated from operations without any cash injection from investors. The keyword is a turnaround and the catalyst for it being in place.

AGIP acquisition has not been factored in, it will definitely bloat the liabilities, but again, the sale of O and O assets to NNPCL will definitely help to reduce the liabilities. I am hopefully that things will get better from next year. I doubt O and O will recapitalise for now. The assets will definitely take care of the liabilities in a long run.

BabsO2:


The argument in bold is similar to saying DANGSUGAR will be recapitalized due to negative shareholders funds of N64 billion reported in 2024Q2, Haba. When the company can easily generate money to make the SHF positive in a short while.

NGX has records of companies turning around negative shareholder funds from profit generated from operations without any cash injection from investors. The keyword is a turnaround and the catalyst for it being in place.

The most recent result for 2022 June had Operating profit of N35 billion but Finance cost was N40 billion .

Ideally finance cost should not exceed 25% of the operating profit.

mikeapollo:


The rule of technical suspension during public/rights offer does not apply anymore. Go check the banks that are currently doing new subscription/rights offer. Their share prices are still moving up/down on the NGX. For instance, Zenith price closed today at N37.85 on NGX but their current offer price is N36.50k
Same will happen if Oando should do any new offer/rights issue.

Again, do you know the price at which the new/rights offer will be made? What if the price is N50 or N70? Cant I sell and make profit at that time?

In another 6 to 7 weeks the bet will be clearer

[quote author=emmanuelewumi post=131521836]


The problem is with the recapitalization that can turn 1 million shares to 100k shares.

/quote]If my BE is #10 and this happens. Then the new guys after injection push the price to #200.It will still be ok for people who bought at low like me based on my maths. I don't think I will wait for it to happen if I see any movement towards that direction....lol

mikeapollo:


The rule of technical suspension during public/rights offer does not apply anymore. Go check the banks that are currently doing new subscription/rights offer. Their share prices are still moving up/down on the NGX. For instance, Zenith price closed today at N37.85 on NGX but their current offer price is N36.50k
Same will happen if Oando should do any new offer/rights issue.

Again, do you know the price at which the new/rights offer will be made? What if the price is N50 or N70? Cant I sell and make profit at that time?

Is Zenith having a capital restructuring. You should use Unity bank as an example because the capital will be restructured

emmanuelewumi:



I don't think you understand what I am saying. Prior to capital restructuring there will be a technical suspension, so I don't know where one will get the capital appreciation if one did not book profit.


With current outstanding shares of about 12 billion, it might be compresses to 1 billion and capital raising will be issued for about 10 billion shares.
Hope you understand the type of dilution being referred.

That is why when insiders want to take their company private, I no dey argue with them. I sell and move on. They know how to legally carry out what they have planned to do

Oando cannot do any capital restructuring to reduce the number of shares in the short term. That would be share buy-back , which is similar to the share buy-out that has been blocked by the Court, at least for now.

thebargainhunte:


AGIP acquisition has not been factored in, it will definitely bloat the liabilities, but again, the sale of O and O assets to NNPCL will definitely help to reduce the liabilities. I am hopefully that things will get better from next year. I doubt O and O will recapitalise for now. The assets will definitely take care of the liabilities in a long run.

In the last AGM Wale was very proud, telling shareholders that he has turned around their company.
In another 6 to 7 weeks the bet will be clearer.

emmanuelewumi:



Is Zenith having a capital restructuring. You should use Unity bank as an example because the capital will be restructured

Oando cannot do any capital restructuring to reduce the number of shares in the short term. That would be share buy-back , which is similar to the share buy-out that has been blocked by the Court, at least for now.

What they can do is rights offer or new offer for subscription, or they go private.
They are looking for money, so why would they do a buy back that would require them paying huge money to shareholders

emmanuelewumi:

The problem is with the recapitalization that can turn 1 million shares to 100k shares.

In order to avoid this shareholders will need to pump in more money, do you think shareholders who have not earned dividends in 8 years will be willing to do that?

That is why insiders and their friends in politics will pump in the required capital injection which will dilute the holdings of the retail investors

Remember that Wale and Boyo owns about 60% of Oando shares. Therefore, any decision taken about all shareholders will also affect their holdings too. Will they allow their shares to shrink alongside other minority shareholders?

What I personally thought was that Oando will release good results over the next one year that will return the company to profitable ways, vis-a-vis positive equity. Thereafter they will then go for right issues which will be allocated to family and friends at more than N100 per share, while the proceeds will be used to pay the debt owed by the company to AFREXIM et al.

emmanuelewumi:



The most recent result for 2022 June had Operating profit of N35 billion but Finance cost was N40 billion .

Ideally finance cost should not exceed 25% of the operating profit.

I believe this high finance cost is because of interest from bank for the first acquisition. I thought I read somewhere it has been renegotiated or restructured.How about if they decide to go the way of special placement to recapitalize as per Tinubu instead of bringing new people on board

emmanuelewumi:



The most recent result for 2022 June had Operating profit of N35 billion but Finance cost was N40 billion .

Ideally finance cost should not exceed 25% of the operating profit.

You are looking at old report
The last report was unaudited 2023 full year with operating profit of N214 billion and PAT of N74 billion.

emmanuelewumi:



Is Zenith having a capital restructuring. You should use Unity bank as an example because the capital will be restructured

Unity Bank is being acquired by Providus Bank; that is why the shares are being restructured.
Oando cannot be acquired by any other company for now. So the scenarios are different!
The worst that can happen is for Oando to get some big investors to pump in money and buy more shares or they acquire convertible loans that can be converted to equity shares in future.

mikeapollo:


Unity Bank is being acquired by Providus Bank; that is why the shares are being restructured.
Oando cannot be acquired by any other company for now. So the scenarios are different!
The worst that can happen is for Oando to get some big investors to pump in money and buy more shares or they acquire convertible loans that can be converted to equity shares in future.

So what will you call the people that might inject up to $500 million for the recapitalization of Oando

BabsO2:


You are looking at old report
The last report was unaudited 2023 full year with operating profit of N214 billion and PAT of N74 billion.

That was what I could get on Oando website


Kindly send the screenshot of where we have the asset, liability and equity of the business

ndept:
Remember that Wale and Boyo owns about 60% of Oando shares. Therefore, any decision taken about all shareholders will also affect their holdings too. Will they allow their shares to shrink alongside other minority shareholders?

What I personally thought was that Oando will release good results over the next one year that will return the company to profitable ways, vis-a-vis positive equity. Thereafter they will then go for right issues which will be allocated to family and friends at more than N100 per share, while the proceeds will be used to pay the debt owed by the company to AFREXIM et al.

They have the financial muscle to increase it from 60% to 90%.


No be for this market we dey when they increased their holdings from 10% to the current level through financial engineering

Insiders and retail investors are playing different games

BabsO2:


You are looking at old report
The last report was unaudited 2023 full year with operating profit of N214 billion and PAT of N74 billion.

Why is the cost of sales this high. Is it what is obtained in that sector or inefficiency on the part of management. This result is promising if it comes out this way as audited

emmanuelewumi:



So what will you call the people that might inject up to $500 million for the recapitalization of Oando

They will call them strategic investors. The company Oando will just issue more shares to them, but it will not be too high to make Wale lose control. They don't have to reduce the shareholdings of current shareholders in order to do that. In fact, Wale himself and a few other executives can provide the money or arrange with a lender. All they would need is authorization at AGM.
Like I said, they can also raise convertible loan stock which can be either repaid gradually or converted to equity in future as situation demands.
Restructuring like that of Unity Bank means an entirely different company is taking over and Wale and other executives would likely lose their shareholdings percentage and control of the company! Can you allow to lose control and ownership of Oando if you were to be Wale, the CEO?

mikeapollo:


The will call them strategic investors. The company Oando will just issue more shares to them, but it will not be too high to make Wale lose control. They don't have to reduce the shareholdings of current shareholders in order to do that. In fact, Wale himself and a few other executives can provide the money or arrange with a lender. All they would need is authorization at AGM.
Like I said, they can also raise convertible loan stock which can be either repaid gradually or converted to equity in future as situation demands.
Restructuring like that of Unity Bank means an entirely different company is taking over and Wale and other executives would likely lose their shareholdings percentage and control of the company! Can you allow to lose control and ownership of Oando if you were to be Wale, the CEO?

What you don't know is that Wale will be among the strategic investors.


Insiders and retail investors are playing different games.

Profit after tax can be misleading, try to dig deeper for the company's owners earnings.