OANDO PLC RE-ENGINEERS OANDO ENERGY.

Oando PLC is putting finishing touches to the financial reengineering of its subsidiary Oando Energy Resources Ltd to ensure greater flexibility in the management of regulatory costs.
According to the notice on the website of the Nigerian Stock Exchange, Oando PLC is offering $1.20 per each common share to minority common share holders. This offer, says the notice is consideration which represents 177.2% premium on the 20-day volume weighted average price of the same common shares on the Toronto Stock Exchange up to December 21, 2015 and based on Bank of Canada's closing exchange rate of $1 to 1.3965 by December 21.
A committee of independent directors led by Bill Watson had reportedly review the arrangement before it was  endorsed by the Board Of Oando.
The notice said that the agreement to back up the minority shares was reached between Oando PLC and Oando Exploration Holdings ltd registered in British Columbia as a subsidiary of Oando PLC.
Contacted by Henates, the CEO of Oando Energy Resources ltd, Mr Olapade Durotoye, not only confirmed the agreement but also added that the minority holdings came into being " as a result of the reverse take over transaction that occurred between Oando Energy Resources and Exile Resources. Exile Resources shareholders became minority shareholders since they owned less than 10% of the post merger company"
This percentage, he added, was further " diluted as Oando PLC invested additional $700m into the company"
According to him, the buy out should position Oando PLC to have "flexibility to better monitor and reduce ... direct obligatory regulatory costs." associated with the Toronto Exchange quotation.
" The essence of the listing on the Toronto exchange was to create a platform for fresh capital to be raised" he said adding " The company has not been able to benefit from this to date but carries exchange fees and the cost of running office in Canada "
Meanwhile, Oando Energy Resources is principally involved in oil and gas exploration in the Gulf if Guinea, particularly Nigeria.

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