Home » Headline » Wale Tinubu’s Oando in big trouble as shares continue to tumble
Wale Tinubu’s Oando in big trouble as shares continue to tumble
Wale Tinubu: The Group MD/CEO, Oando Plc

Wale Tinubu’s Oando in big trouble as shares continue to tumble

Who is after Wale Tinubu-led Oando Plc? Who has the company bitten more than it can chew in its quests to expand? These are the questions that are popping up in investment circles as shares of the Oil & Gas giant continue to hit a free fall.

Last week the company recorded an 8.8 per cent loss in share value making a 12 week straight loss that has confounded operators of the capital market.

Interestingly, there has been a prolonged selloff pattern of Oando shares in the last 20 months, it has been so bad that the company had shed an amazing 63.85 per cent of its market value. It seems investors and shareholders are not happy with the company for some inexplicable reasons.

Some analysts have stated that it maybe the poor performance of the company that occasioned the recent shedding of stake in its downstream business.

It will be recalled that just a few weeks ago, Oando  which has Wale Tinubu and Mofe Boyo at the helm of affairs sold 60 per cent of the economic rights and 51 per cent of the voting rights in the West African downstream business to a consortium comprising Helios Investment Partners  and The Vitol Group.

According to a statement by Oando, the transaction was valued at US$276 million subject to the receipt of regulatory approvals and customary purchase price adjustments, including working capital.

The new downstream and retail business will be established as a standalone, independent company, led by a local management team.

Its assets will comprise over 400 service stations in Nigeria with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly LPG
filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana.

The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12 per cent.

The Consortium is committed to investing for growth, and working with the experienced and highly skilled local management team to enable the business to capitalise on the 3-5 per cent per annum growth in Nigerian demand for oil products. It is anticipated that the service stations will retain the Oando brand.

Ian Taylor, President and CEO, Vitol said; “Vitol has a long history of working in Nigeria and is proud to have served our customers here over many years. This investment is a further reflection of our confidence in the Nigerian economy, and will be independent of the services we provide to our long standing Nigerian customers. We are looking forward to building this new downstream business, alongside our many other business activities in Nigeria.”

Tope Lawani, co-founder and Managing Partner of Helios Investment Partners, said; “This is a market leading downstream energy business with a strong brand and exciting growth potential. Given our successful partnership with Vitol to create Vivo Energy, a leading downstream business which distributes and markets Shell-branded fuels and lubricants in 16 countries across Africa, we are confident that our expertise and regional presence will support the management team in capitalising on its strong market position and the compelling growth opportunities in


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