Shareholders approve Nigeria's Oando capital raising plans

LAGOS Tue Feb 18, 2014 6:56pm IST

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LAGOS Feb 18 (Reuters) - Nigerian energy firm Oando said on Tuesday is shareholders had approved plans to raise 250 billion naira ($1.54 billion) through a combination of rights issues, bonds and global depository receipts.

Of that, 50 billion would be in a rights issue, the company said in a filing through the Nigeria stock exchange.

The oil and gas company said the extra ordinary general meeting of its shareholders also agreed to increase its share capital base to 7.5 billion naira, from 5 billion naira previously.

Its shares were up 3.7 percent to 21 naira per share by 1324 GMT.

Last month Oando announced plans to raise 250 billion naira to fund a $1.79 billion acquisition of a ConocoPhillips Nigerian oil field, causing Oando's shares to fall sharply.

The company, which is also listed in Toronto and Johannesburg, has been struggling to raise the capital needed to close the deal.

Oando has paid a $450 million deposit for the acquisition and has a balance of about $1.23 billion to pay, it has said.

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