Oando is withdrawing its court case and will pay fines while its officials will remain in their respective roles.
Months after a plethora of court cases with counter judgements, the investment community was greeted on the evening of July 19, with the news of a settlement to the dispute between the Securities & Exchange Commission (SEC) and the management of Oando PLC.
Oando has since joined the Nigerian Exchange Group top gainers with a 9.87% increase in its share price from N3.97 on Friday, July 23, 2021, to N4.36 on Monday, July 26, 2021. The share price appreciation can be attributed to the recent settlement which saw Adewale Tinubu and his Deputy, Omamofe Boyo remain at the helm of affairs in the organisation. Following the settlement news, investors poured into the stock helping it top the gainer’s chart.
Speaking on the jump in share price, an Oando shareholder in Lagos said, “We are glad that the dispute is finally over, and we thank the regulator and the management of Oando PLC for resolving the issue in the best interests of the shareholders. For four years, we the shareholders have been the ones on the receiving end. In just one week of settling, our share price has seen a significant increase. I am confident in the management of the company led by Wale Tinubu, other CEOs in his shoes might have caved in but he did not. He held strong to his belief and forged on till the end of the issue. I am hopeful that now that they are able to be fully focused on the business, we the shareholders will soon start to see a return on our investment.”
Oando said it did neither deny nor accept liability and the settlement will lead to the withdrawal of all pending court cases. Wale Tinubu and some of the company’s affected Directors had sued the regulator for infringement of their fundamental human rights in 2019. However, with the settlement, Wale Tinubu and all affected Directors will be required to withdraw said court cases while remaining in their respective executive leadership roles managing the company.
In addition, there will also be “payment of a monetary sum; and an undertaking by the company to implement corporate governance improvements.”
Speaking on the settlement, another shareholder quoted by the firm said: “The regulator has done what it ought to have done months ago. I commend them for making this landmark settlement. This is not a time to erode homegrown businesses but to nurture them so they can continue to create value for the capital market and country at large seeing as we are currently in a recession. I especially commend the resilience and perseverance of Wale Tinubu for seeing this dispute through to resolution.”
Market players will be watching the impact of the SEC settlement on Oando’s share price in subsequent days.