(corrects conversion price in para 4 to C$1.57 per unit, not
C$1.57 per share)
LAGOS, July 10 Nigeria's Oando Plc
has converted a $218.9 million loan to its Toronto-listed unit
Oando Energy Resources to equity, to increase its stake
in the subsidiary by 1.6 percent to 93.6 percent, it said on
Oando said the debt is part of a $1.2 billion facility it
approved for its subsidiary in February to help finance the
acquisition of ConocoPhillips Nigerian assets.
The oil firm secured Nigerian government approvals last
month to complete the deal which it had agreed last year with
ConocoPhillips but was delayed several times due to problems
raising funds, oil industry and banking sources said.
The subsidiary said it converted the debt to equity at
C$1.57 per unit and issued 150 million units to its parent firm.
Each unit consists of one share of Oando Energy Resources and
half a warrant to buy an extra share at a price of C$2 per
It said the deal was approved by the Toronto Stock Exchange
before the conversion. Parent company Oando, which is also
listed in Johannesburg, has said it intends to close
the Conoco deal this July.
It hopes the acquisition will help it make the transition
from a marketer of refined petroleum products into an upstream
business focused on oil and gas exploration and production.
(Reporting by Chijioke Ohuocha; Editing by Oludare Mayowa and