Oando Energy Resources Inc. (TSX:OER) signed a binding documentation to acquire the class B shares of Oando Reservoir and Production Services Limited from Oando PLC (NGSE:OANDO) on March 26, 2013. No securities of Oando Energy Resources were issued in relation to the acquisition and closing of the acquisition will not result in any changes to the shareholders of Oando Energy Resources. Oando Energy Resources’s Corporate Governance Committee comprised of the independent ... directors of the Company, unanimously recommended to the Board of Directors of Oando Energy Resources to approve the acquisition. The acquisition is subject to satisfaction of customary closing conditions and is expected to close on or about April 12, 2013.
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Oando Energy Resources Inc. (TSX:OER) entered into an agreement to acquire Nigerian businesses of ConocoPhillips (NYSE:COP) for $1.8 billion in cash on December 20, 2012. The Nigerian businesses include Conoco Exploration and Production Nigeria Limited, Phillips Brass Limited, Phillips Deepwater Exploration Nigeria Limited and Phillips Oil Company (Nigeria) Limited. The purchase price is subject to customary adjustments. Upon signing of the sale and purchase agreements, ... Oando Energy Resources Inc. paid a cash deposit of $435 million to ConocoPhillips. The payment of the deposit was financed by a $345 million loan from Oando Plc and $90 million funded through secured bridge loans, each of which is guaranteed by Oando, from local Nigerian banks. It is expected that the remainder of the purchase price for the deal will be financed by way of equity and debt, including private placements of equity-linked securities and a follow-on offering of shares of Oando Energy Resources. In addition, it is expected that $800 million of senior secured loans will be provided by a syndicate of international and Nigeria banks. In case of breach of agreement under certain circumstances, the deposit paid will be paid back to Oando Energy Resources. The deal is subject to customary conditions including the receipt of all approvals or consents from any governmental authority and the waiver or non-exercise of rights of first refusal. The deal is anticipated to close during the first half of 2013, following appropriate consultations with stakeholders. One of the acquired businesses called Phillips Oil Company Nigeria Limited is cash generative and is expected to contribute positively to the cashflow of Oando Energy Resources Inc. BNP Paribas acted as financial advisor for ConocoPhillips. Argentil Capital Partners acted as financial advisor to Oando Energy Resources.
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