Wale Tinubu, a prominent Nigerian entrepreneur In less than three weeks, has witnessed an astounding increase in the value of his holdings in Oando Plc. The market boost, amounting to over $40 million, comes amid heightened investor interest in the Nigerian Exchange (NGX). This uptick follows Oando’s recent announcement of its plans to fully acquire the Italian-owned Nigerian Agip Oil Company Limited (NAOC Ltd) shares, causing a positive stir among NGX investors.
According to reports, the business magnate’s stake in the energy conglomerate has soared by approximately N31.38 billion ($40.01 million) within just 17 days. This comes as market participants eagerly buy up Oando shares in response to the firm’s strategic move to acquire NAOC Ltd.
Oando Plc operates across multiple segments of the oil and gas industry, including upstream, midstream, and downstream sectors. The company enjoys the unique distinction of being dual-listed, not just on the Nigerian Exchange but also on the Johannesburg Stock Exchange.
The move by Oando to fully acquire the shares of Italian-owned Nigerian Agip Oil Company (NAOC) has the potential to be a game-changer for Nigeria’s oil and gas sector. If finalized, this acquisition would double Oando’s ownership stake in Oil Mining Leases (OMLs) 60, 61, 62, and 63 from 20% to a remarkable 40%. Yet, this ambitious transaction is still subject to the green light from regulatory bodies and ministerial consent.
Wale Tinubu, a key player in Nigeria’s energy market, indirectly holds a stake in Oando through his ownership of 66.67% of Ocean and Oil Development Partners (OODP). This investment firm, co-owned by Tinubu and Omamofe Boyo, holds over seven billion ordinary shares in Oando.
Wale Tinubu’s rapid surge in share value bolsters his financial position
The month of September has seen a dramatic uptick in the value of Oando shares on the Nigerian Exchange. They have rocketed by 120%, growing from N5.50 ($0.007) on the first day of September to N12.10 ($0.0153) at the current valuation. This surge has generated multimillion-dollar profits for the company’s shareholders, including the already affluent Tinubu.
Following a remarkable 120% increase in the share price of Oando, the Nigerian energy conglomerate, the market value of Wale Tinubu’s holdings has experienced a notable uptick. Over a span of just 17 days, the worth of his stake leaped from N26.15 billion ($33.34 million) at the start of September to a staggering N57.53 billion ($73.35 million) by the current assessment.
This exponential financial growth has not only further entrenched Wale Tinubu as a wealthy investor in Nigeria’s financial market but also cemented his status as one of the nation’s most affluent individuals. In addition, through his investment firm Ocean and Oil Development Partners (OODP), Tinubu is considering the option of taking Oando private, signaling more strategic moves ahead.
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