Nigeria's Oando starts marketing to raise $267 mln equity

Wed Dec 3, 2014 7:07am EST
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LAGOS Dec 3 (Reuters) - Oando Plc on Wednesday started marketing a 48.7 billion naira ($267 million) share sale to raise capital from existing shareholders, the Nigerian energy company said.

It said in a notice it would sell 2.2 billion shares at 22 naira each via a rights issue at a ratio of one new share for every four held as at July 25.

Oando, which is also listed in Toronto and Johannesburg, was trading at 20.43 naira at 1146 GMT, a 7.1 percent discount to the rights price.

In June, Oando completed a $1.65 billion acquisition of ConocoPhillips' Nigerian assets to boost its oil production base.

It has since gotten shareholders' approval to raise up to 250 billion naira ($1.37 bln) through a combination of rights issues, bonds and global depository receipts to boost working capital and pay off existing debt.

It said the rights issue would close on January 14, 2015.

(1 U.S. dollar = 182.40 naira) (Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha)