Nigeria's Oando has reached a settlement with the Securities and Exchange Commission (SEC), the oil company said on Monday, after the regulator ordered the removal of its management team and suspended its annual meetings.
Oando challenged the regulator's actions. It has been in a battle since 2017 after the SEC said it had investigated two shareholder petitions alleging gross abuse of corporate governance and financial mismanagement.
The company, which has a dual listing in Johannesburg, acquired ConocoPhillips' Nigerian asset in 2014 to transform itself from a petrol retailer to an oil producer competing with multinationals such as Shell and Exxon Mobil.
The SEC said it settled the dispute due to impact that a prolonged period of litigation would have on the company's shareholders and the value of their investments.
It asked Oando to withdraw all legal actions, pay an undisclosed monetary sum and provide an undertaking to improve governance.
Shares in Lagos-listed Oando, which peaked at 127 naira per share in 2008 but tumbled amid continual turmoil in recent years, closed flat on Monday at 3.15 naira.
"This has been an extraordinary time in the life of the company and a defining moment in its relationship with the regulator," Oando said in a statement.
"Oando's directors and management team can now fully focus on business operations," it said, adding that Oando will convene its annual meeting in the "immediate".
The settlement paves the way for Oando to audit its accounts after the regulator suspended its annual meetings in June 2019 and ordered Oando's chief executive, Wale Tinubu, and others to resign following an investigation into financial infractions.
Tinubu dismissed the SEC charges as unsubstantiated and obtained a court order blocking the regulator from replacing him as chief executive and taking other action against the oil company, pending further hearings on the case.
Oando will submit quarterly reports on compliance based on the terms of the settlement, the SEC said.