Oando Market Value Rises after Deal to Fund Acquisition
Equities investors queue for Oando Energy Plc shares following the company secured a $800 million deal to fund its acquisition of Nigerian Agip Oil Company (NAOC) from the African Export-Import Bank.
Data from the Nigerian Exchange showed that the Ticker: OANDO rallied by 22% as investors ramped up more shares over an expectation that the acquisition of the oil asset would improve its earnings performance.
At the Intra-African Trade Fair in Egypt Cairo, Afrexim and Oando Plc signed an $800 million loan document to facilitate the firm’s acquisition of NAOC.
The indigenous energy company announced in September that it has an agreement with Eni, an Italian multinational energy company with operations in 62 countries, including Nigeria, for the acquisition of 100% of the shares in NAOC.
The oil firm acquired a 20 per cent stake in Nigerian Agip Oil Company Limited. This includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.