The Nigerian Stock Exchange has issued a press release clarifying the lifting of the suspension of trading of Oando shares, which was further suspended again during intra-trade.
In a press release sent to Nairametrics, the Exchange cited instruction from the Securities and Exchange Commission as the reason for the apparent confusion. According to the Exchange, they received a notification from SEC to lift the suspension of trading of Oando shares only to receive a counter instruction that the shares be suspended again.
The Exchange, however, commented that Oando shares will resume trading again on Thursday “following consultation” with the Commission.
Oando has been embroiled scandals since July last year following a petition to the SEC in July last year by two aggrieved shareholders Gabriel Volpi and Dahiru Mangal. The duo accused Oando’s senior management led by Wale Tinubu and Mofe Boyo of mismanagement, a charge they denied. Mangal has since withdrawn his petition following mediation by Emir of Kano, Sanusi Lamido Sanusi. He has also nominated Alhaji Bukar Aji as his representative on the board.
In response to the petition, the Securities and Exchange Commission instituted a forensic audit following their initial findings. Oando, filed several cases in court to prevent the audit from taking place. The suits were however struck out, and the company has since signified its willingness to cooperate.
Director General of the Securities and Exchange Commission Munir Gwarzo has alleged he was placed on suspension by Minister of Finance Kemi Adeosun, for his refusal to halt the audit. She has however vehemently denied this.
See the press release below
Information on Trading in the Shares of Oando Plc
Lagos, April 11, 2018: The Nigerian Stock Exchange (“NSE or “Exchange”) will like to clarify and confirm the status of trading in the shares of Oando Plc (“Oando”) which are currently on full suspension.
By a letter dated 9 April 2018 from the Securities and Exchange Commission (“Commission”), 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.
Subsequent to the lifting of the technical suspension, on 11 April 2018, The Exchange received another communication from the Commission 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.
In the overall interest of investors in Nigeria’s capital markets, and following consultation with the Commission please be advised that at the start of trading tomorrow, 12 April 2018, trading in Oando’s shares will resume without any impediment in price movement consistent with the NSE’s market structure.
The Exchange shall endeavor to keep the investing public and the entire capital market ecosystem informed should there be any further developments on this matter.