TIME TO WATCH OANDO PLC.

It is time for minority investors to pay closer attention to their investment in Oando Plc one of Nigeria's indigenous petroleum company.

According to confirmation from Ayotola Jagun, the company secretary, the majority shareholder in the company is currently having a judgement debt of $680m hanging over its head.

Like Jagun rightly pointed out, Oando itself is not involved directly but Henates adds that the fall out from it could affect Oando.

The fact of the matter is that Oando is owned 57.37% by Ocean & Oil Development Partners Nigeria.

On its part, the Ocean & Oil parent company of Oando is a joint venture registered in the Virgin Islands between Ansbury Incorporated and Whitmore Asset Management ltd.

Now the partnetship has gone sour and the International Court of Arbitration has ordered the partnership to pay $600m to Ansbury and Whitmore itself is to also pay additional $80m to Ansbury.

Of course, there should be no fall outs for Oando plc and its shareholders if the judgement debts are paid promptly.

What if it becomes a case of can't pay? Well, naturally because Oando is technically a subsidiary of the partnership, the resultant fall out could affect Oando share price at the different exchanges it is quoted.

Besides, it is possible that Mr Wale Tinubu will find it difficult to retain his position in Oando as the one who started it all and have been leading the company through its pioneering roles.

This is because his interest in Oando is indirectly through the parent partnership because he is part owner of Whitmore.

Meanwhile, in the light of petition submitted to the Security & Exchange Commission, forensic audit, says Ajagun has  been ordered for Oando by an independent auditors since March 2018.

So, minority shareholders should cross fingers and look out for the forensic audit report.

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