In a statement by the commission, made available to Tribune Online, SEC has directed the Nigerian Stock Exchange (NSE) to suspend trading in the shares of Oando Plc.
According to the statement, the suspension on the shares of Oando is effective for 48 hours or two days, from Wednesday, October 18 2017 to Friday, October 20, 2017. The Exchange would implement a full suspension in the trading of the shares of Oando Plc.
It further stated that from October 20, 2017 and until further directive, the Exchange should implement a technical suspension in the shares of Oando Plc, explaining that investors will be able to trade in Oando’s shares but such trading will not result in any movement in the price of the shares.
A subsequent statement to the sealing members, signed by the General Counsel/Head of Regulation of NSE, Tinuade Awe explained that “A full suspension is the halt of trading activities in a listed security for a period. A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.”
Capital market operators noted that the regulator may have taken the step as a prelude to a full scale audit of the company’s books and to prevent insiders or speculators from profiting from any price movement.
Also, a recent directive given to the Securities and Exchange Commission (SEC) by the House Committee on Capital Market and Institutions to investigate allegations of financial impropriety and mismanagement at Oando Plc.
Oando, an indigenous oil and gas conglomerate has been enmeshed in a supremacy battle for the control of the company with one its proxy and direct shareholders.
SEC had since disclosed it was investigating Oando as regards the company’s $1.6 billion acquisition of ConocoPhillips assets in Nigeria’s Niger Delta in 2014.
The shareholders Gabriel Volpi co-founder of Intels Plc and Northern businessman Alhaji Dahiru Mangal have accused the company’s management of financial recklessness, and denying them adequate representation on the board. Other aggrieved shareholders have laid similar allegations.
Oando has however denied the allegations, and stated that it was cooperating fully with the regulator.
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