Oando Plc is rewarding its shareholders by giving them 1.28 billion additional shares in the form of stock dividend, thereby enabling the investors to have additional shares added to their investment portfolio at no extra cost.
A news report from African Press Orgnaisation (APO) Group circulated on behalf of the company indicated that this decision followed the approval of shareholders at the Company’s 45th Annual General Meeting (AGM) held on December 17, 2024.
At the meeting, the Board and shareholders decided that “the Company may cause shares received pursuant to sub-resolution (b) above, and/or their cash equivalent to be distributed to shareholders of record at date(s) as may be determined by the Board of Directors, from time to time, on a pro-rata basis.”
Subsequently, the Board of Directors resolved to distribute the shares with a total worth valued at ₦97,562,157,676, based on the company’s closing share price of N76 as of January 30, 2025, in two tranches in a meeting held on that date. The shares will be distributed to its shareholders beginning with 641,856,301 ordinary shares at the close of business on February 14, 2025, and 641,856,300 ordinary shares at the close of business on June 30, 2025.
- Advertisement -
Based on the decision reached at the AGM, Oando investors are getting a return on investment of over 10% as well as increase in potential future dividends.
Also, instead of paying cash, which could weaken the company’s future financial position, Oando is preserving value and ensuring shareholders benefit from future growth through this scheme. By distributing shares, the company can maintain a strong financial position, which is crucial for future growth and investment opportunities.
This positive development for Oando shareholders directly increases minority shareholders’ ownership stakes by one new ordinary share of 50 kobo each for every 12 existing ordinary shares of 50 kobo held by the shareholders without dilution.
The decision taken at the AGM came in the wake of the company’s performance in 2024, bolstered by its $783 million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024, which led to an increase of over 500% in its share price.
The acquisition also impacted the company’s FY 2024 financial results, resulting in a 45% surge in revenue to N4.1 trillion.
Building on the track record of 2024, Oando announced the award of Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025 even as the Group Chief Executive (GCE), Wale Tinubu, in a recent statement, hinted that the company would prioritise cost optimization, operational efficiency, streamlining processes, enhancing procurement, and leveraging technology to improve productivity across operations.
