Oando ups stake in Canada unit to 93.6 percent

Nigeria’s Oando has converted a $218.9 million loan to its Toronto-listed unit Oando Energy Resources to equity, to increase its stake in the subsidiary by 1.6 percent to 93.6 percent.  Oando in a statement said the debt is part of a $1.2 billion facility it approved for its subsidiary in February to help finance the acquisition of ConocoPhillips Nigerian assets.

The subsidiary said it converted the debt to equity at C$1.57 per unit and issued 150 million units to its parent firm. It said the deal was approved by the Toronto Stock Exchange before the conversion. 

Oando has secured the “massive” minister’s consent and approvals last month to complete the deal which it had agreed in 2013 with ConocoPhillips but was delayed several times due to problems arising from raising funds according to analysts.

It hopes the acquisition will help it make the transition from a marketer of refined petroleum products into an upstream business focused on oil and gas exploration and production.