First Bank

Friday, September 20, 2013

Oando Suffers Heavy Losses,Shares Dumped Over Convicted Gov James Ibori's Ownership of 30% Of Oil Firm!

Oil firm, Oando is experiencing heavy loss over links to former governor jailed for corruption abroad, Mr James Ibori.

Here is a report of the consequence of allegation by british prosecutor,Sasha Wass that Ibori claimed to own 30% of Oando and the company paid over $4.2m into companies owned by the in jail former governor.

'Shares in Nigerian oil company Oando fell by almost the 10 percent limit allowed on the Nigerian Stock Exchange (NSE) for a second day following allegations by a British prosecutor about links to jailed former Governor of Delta State, James Ibori.

The energy company’s shares were down 9.37 percent at 9.14 naira ($0.06) by 1017

GMT, Reuters data showed, after briefly falling 9.95 percent.
'British prosecutor Sasha Wass told a London court on Tuesday that Ibori had revealed to a Swiss private bank in 2004 that he owned 30 percent of Oando, which paid $1.2 million into his account that year.

Wass was elaborating on allegations about links between Oando and Ibori made at the start of a three-week confiscation hearing at London’s Southwark Crown Court on Monday.

'Oando has admitted paying more than twice that sum into Ibori-owned companies, but denied it knew they were his.

It also denied he had a significant shareholding in Oando.

'The allegations and negative share price reaction could prove a headache not just for Oando but for U.S. oil giant ConocoPhillips, which is selling its Nigerian assets to Oando’s Toronto-listed subsidiary Oando Energy Resources Inc. for $1.79 billion.

Ever since that deal was disclosed in December last year, industry experts have doubted whether Oando would be able to raise enough cash to complete the sale – despite numerous bank loans and rights issues.

'Oando has said it already has the funding secured.

Details of Ibori’s assets and how he used shell companies, foreign bank accounts and other investments to hide them are being disclosed as part of the court hearing in London.

'It is one of the biggest embezzlement cases seen in Britain and a rare example of corruption in Africa’s second biggest economy being punished.

One equity dealer said people were dumping Oando’s stock as a result of panic because of the negative news, but that the company’s fundamentals were still strong.

“The price earnings ratio is one of the best in the sector,” he said.

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