Oando shareholders task SEC on value recovery, ROI
Shareholders of Oando have urged the Securities and Exchange Commission (SEC) to assist the company recover from the prolonged dispute, convene its yearly general meeting and increase return on investment.
According to them, giving the current macro-economic challenges, coupled with uncertainty in the global economy, it has become crucial that efforts must be made to assist the management ensure that business activities continue in the usual way to increase shareholders’ value.
Specifically, the President of Ibadan zone Shareholders Association, Eric Akinduro said: “ I must also commend the board of the company for taking this step at this critical time to salvage the company. We shareholders are happy and we are waiting for next line of action particularly to hold AGM as to give update of the company as at date.
“This is overdue because investors had suffered enough. It is going to impact positively on the company’s share price, as many investors that have been waiting for such news will take a position and increase their stake in the company”.
The Publicity Secretary of the Independent Shareholders Association (ISAN), Moses Igbrude said: “It is good news that the rift between Oando and SEC is over. The protracted problem has dragged the company to mud for so long. Investors have lost so much. Thank God for the settlement.
“I appeal that all parties should accept all resolutions as agreed for the sake of the company, shareholders and the Nigerian capital market. I expect the market to react to the news positively in way of price appreciation and I sincerely appeal to Oando management to take advantage of the settlement to enhance the value of the company for the benefits of all,” he said.
According to Patrick Ajudua, the settlement marks the first time in Nigerian corporate history that the apex regulator, the SEC and an organisation reach a settlement in the interest of the capital market.
He described the action as encouraging for the business environment, the capital market and the investing community. He said: “It is a great delight that SEC and Oando have reached an amicable settlement following their long-running dispute. It is victory for all lovers of peace in the capital market and for all Oando shareholders who have been disproportionately affected by the prolonged dispute.
“I hope and pray that lessons have been learnt and efforts must be made to assist the management team return to business as usual and recover from the lengthy dispute in order to deliver value to us. On the part of the regulator, we are grateful to them for towing the part of peaceful resolution. To the Board and Management of Oando, I want to commend their resilience and patience all through the period of dispute”.
Oando and SEC had on Monday reached a settlement following a four-year-long dispute. According to Oando, the settlement is a win for the capital market, especially the shareholders who have been the most hit going by the increasing level of insecurity, kidnapping, recurrent farmers-herders clashes, unemployment, weak naira and GDP growth, rising inflation and dwindling revenue, as well as a fall in the country’s ranking on the ease of doing business index.
In a statement by the SEC, it indicates that the company reached a settlement with the Commission on Thursday, July 15, 2021 without accepting or denying liability.
Furthermore the settlement includes the immediate withdrawal of all legal actions filed by the Company and all affected directors; payment of a monetary sum, an undertaking by the company to implement corporate governance improvements and a submission by the company of quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
The settlement will finally enable Oando’s Management team to focus on its business operations, create value for its shareholders, and in the immediate, allow the company to convene its 42nd Annual General Meeting (AGM) to give its shareholders the opportunity to exercise their rights to receive information as well as vote on company affairs.