Yemisi Izuora
The tide certainly seems to be turning for Oando PLC following the recent Peace Accord between the Company and Alhaji Dahiru Mangal. Oando’s management team spent the better part of 2017 defending the Company’s business and reputation following the Securities and Exchange Commission’s (SEC) investigation into its affairs on petitions raised by two shareholders, Alhaji Mangal and Ansbury Inc.
According to a press statement issued by Oando, ‘Alhaji Mangal has confirmed his status as a substantial shareholder in the Company and all the issues he raised in his petition to the SEC have been successfully addressed and clarified.’
This action is in line with the Company’s promise at the end of last year where it committed to the successful conclusion of the SEC investigation so that it could refocus its energy on managing the business optimally.
Oando PLC’s Group Chief Executive, Jubril Adewale Tinubu said “I am pleased we have been able to reach an amicable agreement with Alhaji Dahiru Mangal and successfully address the concerns he raised in his petition to the SEC.” Commenting further Alhaji Dahiru Mangal said: “Following the clarification I have received from Oando’s management team, I have withdrawn my petition to the SEC.
The successful execution of the Peace Accord was mediated by the Emir of Kano, Emir Muhammadu Sanusi II (CON), who said “The development of the Nigerian economy is hinged on local participation; it is therefore an imperative that as a people we come together to make indigenous participation and success a reality. I have watched Wale Tinubu from his days in Ocean and Oil and I am extremely proud of his growth and the company he has built. Oando is proudly a Nigerian company whose impact has been positively felt by every Nigerian. The Company is evidence of the progress we have made from an IOC led sector to one that is thriving with a mix of indigenous and international players. I call on Alhaji Mangal and Wale Tinubu to see themselves as partners focused on achieving one goal; attainable only if they have confidence and trust in one another.’’
Following the Peace Accord and declaration of his substantial shareholding, the Company has encouraged him to exercise his rights as a shareholder by having more oversight of the Company’s affairs; the belief is that this will enable him gain a better understanding of the Company’s business development plans, initiatives and operations. “We encourage him to exercise his rights as a substantial shareholder and be more involved in the affairs of the Company. Shareholders must be confident in the operations of the company they are invested in; this can only occur through dialogue and active participation.’’ Wale Tinubu said.
In addition, subject to the provisions of the SEC Code, Companies and Allied Matters Act (‘CAMA’) and Oando’s Board Appointment Process, Oando’s Board of Directors will consider the appointment of representation for Alhaji Mangal to the Board. Oando has reinforced its stance that its business is run above board by publicly inviting Alhaji Mangal to have more oversight of its operations and exercise his rights as a shareholder which include the right to share in the Company’s profitability, as well as have a degree of control over the selection of the Company’s management team and General Meeting voting rights.
This commendable development comes in the wake of minority shareholders expressing displeasure at the public nature of the investigation and the negative impact it has had on the Company’s reputation and to a degree operations. Oando took on the advice of its shareholders who requested the Company concentrate on reconciling with the disgruntled parties, and get back to the creation of value for its shareholders. This Peace Accord will see many of these shareholders breathing a sigh of relief and looking forward to a stronger balance sheet following the continued upward trajectory in the price of oil.
An anonymous shareholder lauded Oando’s resilience over the last few years especially over the last year “I don’t know many companies that could have withstood the pressure Oando has been through over the last few years. Last year was a tough year, to me the toughest the company has ever had. Their shares were suspended and market value dropped. Despite all of this, Oando still made a profit in every quarter of 2017. This has gladdened the hearts of us shareholders who have been with the company since its Unipetrol days. We pray 2018 is even better for the company and inevitably, us.”
Operations wise, Oando ended 2017 on a positive note announcing 3 consecutive profits; the onus is on the Management team to ensure it reaps the benefits of increased oil prices, an upstream focus and dollar revenue for an even more fruitful 2018 and resuscitating shareholder belief in the Company. This was resounded by Alhaji Mangal who said: “I invested in Oando because I could see its potential. It is therefore with excitement that I concur to this Peace Accord signifying the renewal of our relationship; one that gives me more insight into the Company’s operations and aspirations and involves more dialogue. I am confident in the Company’s leadership team and trust that with the right support it will continue to grow from strength to strength, returning real value to all its shareholders including my good self.’’
Oando is a proudly indigenous Company, an employer of labour and an enabler of the economy through CSR projects in education and infrastructure development. Despite the company’s challenges the Emir preached for peace and support for indigenous businesses saying “It is my belief is that they have put the past behind them and are looking forward to working together to create greater success stories. As Nigerians we must protect our local industries and ultimately the development of this great nation and so I am excited by what this means for the company and Nigeria as a whole.’’