Oando seeks N30bn for expansion - As Ecobank declares N7.5bn profit

Friday Ekeoba Lagos - 28.05.2008

IN pursuit of its expansion and growth drive, Oando Plc said it had concluded plans to raise $250 million (about N30 billion) from both local and international markets. Mr. Adewale Tinubu, Group Chief Executive of Oando, who made this disclosure at the company’s Annual General Meeting on Tuesday, said the fund would aim at developing down and upstream businesses into a world class facility.

He said the money would also enable the company to play a dominant role in the gas service sector of the economy. “Gas service station will be located in the same way we are having petrol stations in the country,” he said. Tinubu, who said about 300,000 hectares of land had been acquired in Lagos for the building of a local refinery, noted that existing shareholders of the company would be given preferential treatment during the company’s offer.

He explained that the $250 million would translate into 49 per cent divestment of the company’s group equity holding earlier being rumoured.

The trio of Chief Adeyemo Oyepeju, Sir Sunny Nwosu and Francis Oji, all leaders of various shareholders groups, said shareholders of the company would always abide by whatever decisions the management would take to grow its fortunes.

In another development, Ecobank Nigeria Plc has declared a profit after tax of N7.5 billion for the financial year ended December 31, 2007. The company will also hosts its shareholders to its annual general meeting in Lagos today.

This figure, compared to the 2006 results, represents 109 per cent growth. According to the annual report of the bank, it enjoyed a year of unprecedented growth in 2007 as its gross earnings grew by 90 per cent to N33 billion from N17 billion recorded in the preceding year.

The bank’s profit before tax hit N10 billion, representing a 101 per cent increase over previous year’s figures, while the operating ratios also generally recorded positive improvements.