By Modupe Gbadeyanka
Trading of shares of Oando Plc on the floor of the Nigerian Stock Exchange (NSE) has been suspended.
A statement signed by the General Counsel/Head of Regulations at the stock market regulator, Tinuade T. Awe, disclosed that the suspension order was given by the Securities and Exchange Commission (NSE).
According to the statement, “Dealing members are hereby notified that the Securities and Exchange Commission has directed the Nigerian Stock Exchange (NSE) to suspend trading in the shares of Oando Plc effective for 48 hours from today, October 18, 2017 to October 20, 2017.
“The Exchange should implement a full suspension in the trading of the shares of Oando Plc; and effective from October 20, 2017 and until further directive, The Exchange should implement a technical suspension in the shares of Oando Plc.
“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.
“In the 48 hour period commencing today, there will be no trading in the shares of Oando Plc.
“Thereafter, effective 20 October 2017, investors will be able to trade in Oando Plc’s shares but such trading will not result in any movement in the price of the shares.”
Business Post recalls that the capital market regulator has been investigating Oando Plc after it received petitions filed against the oil firm by two parties believed to be shareholders of the company.
The petitioners, Ansbury Inc. and Mangal, wrote petitions to the capital market regulator, alleging the board of Oando Plc led by Mr Wale Tinubu, of gross financial misconduct.
The two parties had earlier wanted SEC to stop the 40th Annual General Meeting (AGM) of the firm, but the regulator, after a panel report, said it found no reason to suspend the AGM.
The meeting eventually held in Uyo, Akwa Ibom on Monday, September 11, 2017, and shareholders voted to retain Mr Tinubu as Group Chief Executive.
Last month, the House of Representatives Committee on Capital Market and Institutions held a closed door meeting with the Director-General of SEC, Mr Mounir Gwarzo, on the petitions, and directed SEC to complete its investigations into petitions within two weeks. READ HERE
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