April 11, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) on Wednesday confirmed the lifting of the technical suspension slammed on oil marketing major Oando Plc.
Shares of Oando Plc were placed on technical suspension in October 2017 upon the announcement of forensic audit which aimed to protect investors as a short term measure.
According to SEC, the suspension of the shares of Oando was prolonged due to several litigations by the company and other shareholders contesting the propriety of the forensic audit and technical suspension.
“All Litigations have now been withdrawn, the independent forensic audit by Deloitte is ongoing and the primary result is expected,” SEC said in an emailed statement to InvestAdvocate.
Accordingly, the SEC directed the NSE to lift the technical suspension and allow market determination of the share price.
On its part, the NSE said by a letter dated April 9, 2018 from SEC, The Exchange was directed to lift the technical suspension placed on the trading of Oando’s shares.
“In compliance with the Commission’s directive, The Exchange by a letter dated 10 April 2018, informed the Commission that it will lift the technical suspension placed on the shares of Oando effective 11 April 2018. This action was duly effected and trading commenced without any impediment to price movement in the morning of 11 April 2018,” the NSE statement affirmed.
According to The Exchange, subsequent to the lifting of the technical suspension, on 11 April 2018, it received another communication from SEC to maintain the status quo prior to the Commission’s letter of 9 April 2018, i.e., the technical suspension of trading in Oando’s shares. “In order to ensure compliance with the Commission’s further communication notwithstanding the fact that The Exchange’s systems cannot implement a technical suspension intraday, the Exchange suspended trading in Oando’s shares. The Exchange regrets any inconvenience that may have arisen due to the foregoing,” the statement added.
The NSE says in the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission, trading in the shares of Oando Plc will commence on Thursday April 12, 2018,. “Trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure,” the NSE said.
The Exchange further affifrmed it shall endeavour to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter.
