In an effort to reduce its dependence on debt and loans, Oando Plc is to increase its authorised share capital from N5 billion to N7.5 billion so as to make room for potential capital raising opportunities. The company wants to rely more on equity financing, hence the bid to increase its share capital to N7.5 billion.
The Board, who want to rely more on equity financing, will be seeking the approval of other shareholders for the capital increase at an Extra-Ordinary General Meeting scheduled to hold in February 18, 2014.
According to Tinubu, the Group Chief Executive, the first phase of this long term plan will involve raising further capital by way of rights of N50 billion expected to be concluded by the end of second quarter of 2014. He re-iterated the company's three pronged approach of transformation, debt reduction, and substantially increasing shareholder value.