By Modupe Gbadeyanka
Capital market regulator in Nigeria, Securities and Exchange Commission (SEC), has launched a full investigation into financial statements of Oando Nigeria.
It was gathered that SEC has observed alleged malpractices in the company’s financial statements and it has formally written to the oil firm to provide sufficient explanations on the mater.
According to Channels TV, competent sources divulged to it that SEC commenced the investigations following petitions filed by some foreign investors in Oando Nigeria Plc in relation shareholding structure following the $1.65 billion cash the firm paid in June 2014 to acquire the oil production assets of Conoco-Phillips in Nigeria.
Next week, SEC will likely decide on the next line of action on Oando Nigeria depending on the response from the company.
Oando is listed on both the Nigeria and South Africa Stock Exchanges with shares of its subsidiary – Oando energy resources listed on the Toronto Stock Exchange but delisted in 2016.
Three years ago, Oando Nigeria used its subsidiary – Oando Energy resources to buy Conoco-Philips oil assets in the Niger Delta, the first of such landmark upstream sector acquisition by any indigenous oil firm.
The Conoco-Phillips acquisition was followed by some shareholding restructuring announced by Oando Nigeria.
