* Oando to issue 2.05 bln shares at 15 naira a share
* Equity will part-finance $1.79 bln Conoco deal
* Shares up 29 pct this year, flat on Wednesday
By Chijioke Ohuocha
LAGOS, Dec 18 Nigerian energy firm Oando
is offering 30.75 billion naira ($193 mln) in shares
on Wednesday to help it buy ConocoPhillips' assets in
Nigeria, bankers close to the deal told Reuters.
Oando, which is also listed in Toronto and
Johannesburg, agreed to buy the U.S. oil company's
Nigerian business for $1.79 billion a year ago. The deal was
delayed by difficulties raising finance.
Oando will issue 2.05 billion shares at 15 naira per share to
institutional investors in a one-day special placement on
Wednesday, two banking sources said. Proceeds from the share
sale will help to finance the acquisition. Oando also has
commitments for several hundred million dollars in bank loans.
The company 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
Shares in Lagos trading for Oando were flat at 16.10 naira
at 1350 GMT. The stock has gained 29.5 percent so far this year.
Oando said earlier this month it would delay the completion
of the acquisition deal by two months to January from the
scheduled November. It did not give a reason.
The company has paid a $450 million deposit for the
acquisition. It has a balance of about $1.23 billion to pay
after adjustments, the company has said.
Conoco's fields produced about 43,000 barrels of oil a day
last year and have proven reserves of 213 million barrels of oil
equivalent. Oando chief executive Wale Tinubu has said the
upstream business will account for about three quarters of
Oando's assets after the acquisition, against 40 percent now.