Oando Plc, Nigeria’s largest indigenous oil and gas firm will seek shareholders’ approval to raise N250 billion ($1.5 billion) through debt and equity, a report by Reuters revealed.
The oil firm will tender the request in its forthcoming shareholder meeting, slatted for 18th of this month, it confirmed via an official statement.
According to the energy company, N50 billion ($307.9 million) will be sourced from existing shareholders through new rights issues, while the N200 billion ($1.23 billion) will be raised externally.
Oando is Nigeria’s largest non-government owned company in the energy industry with interests in the entire oil and gas value chain including exploration and production (E&P), petroleum marketing, refining and power.
Despite market cap $1 billion, it has however struggled to meet financial obligations in recent times, having to delay the purchase of ConocoPhillips last year due to its inability to raise the required funds.
It subsequently offered shares worth N30.75 billion ($193 million) to fund the acquisition later last year.