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By Isaac Anumihe
Twenty-four hours after the Securities and Exchange Commission (SEC) technically suspended trading in the shares of Oando Plc, the Johannesburg Stock Exchange (JSE) yesterday followed suit by freezing trading on the security, thus worsening the firm’s problem.
The suspension was communicated to SEC through a correspondence between the JSE and the Nigerian Stock Exchange (NSE).
According to the letter announcing the suspension, JSE said that it was suspending Oando’s shares following the suspension in its shares by the Nigerian Stock Exchange (SEC), a directive to which Nigerian Stock Exchange (NSE) has complied with. The letter, said, JSE has therefore suspended Oando’s shares with effect from yesterday morning.
“The Company has received communication from its primary listing, the Nigerian Stock Exchange (NSE), that the Securities and Exchange Commission (SEC) has issued a directive to immediately suspend the trading of Oando shares, a directive to which the NSE has complied,” the JSE said in its notice.
“The JSE has accordingly suspended trading of the Oando shares with effect from 09:00 a.m. SA time, pending further clarifications following the review of subsequent correspondence received on October 18, 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.”
Recall that General Counsel and Head of Regulation at the NSE, Tinuade Awe, had said that the full suspension was effective for 48 hours from Wednesday to Friday, after which it would commence a technical suspension until further directive.
According to Awe, “in the 48-hour period commencing Wednesday, there would be no trading in the shares of Oando Plc,” adding that from Friday, 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.
Apart from the Nigerian bourse, Oando is listed in Johannesburg and Toronto.
Recall also that a group of aggrieved shareholders had attempted to disrupt Oando’s Annual General Meeting in Uyo, Akwa Ibom State, over allegations of gross misconduct levelled against the management of the oil firm.
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