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Thursday, 19 December 2013
Oando To Fund CoconoPhillips Deal From $193m Share Offer
VENTURES AFRICA – Nigerian oil marketing firm Oando Plc, is looking to fund the acquisition of CoconoPhillips’s local assets through a share offer, sources close to the deal have disclosed.
Last year, the indigenous downstream operator agreed to buy Cocono’s field – currently producing about 43,000 bpd – for $1.79 billion but has struggled to raise the required capital needed.
However, bankers close to the deal informed Reuters on Wednesday that Oando is offering a N30.75 billion ($193 million) to facilitate the acquisition process.
According to Reuters, Oando will make a one-day special placement to institutional investors, issuing 2.05 billion shares at N15 per share.
The oil marketer announced on Monday that it was delaying conclusion of deal till January, following unsuccessful attempts to secure bank loan funding.
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