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The Nigerian Stock Exchange (NSE) has suspend trading in the shares of Oando Plc, effective for forty eight hours from today October 18 to 20, 2017.
The suspension follows the Securities and Exchange Commission (SEC) directive to the self regulatory body.
According to a statement from the NSE, which was signed by Tinuade Awe, General Counsel / Head of Regulation, noted that the technical suspension is effective from 20 October 2017 and until further directive.
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.
It would be recalled that based on the directive given to the Securities and Exchange Commission (SEC) by the House Committee on Capital Market and Institutions recently to investigate allegations of financial impropriety and mismanagement of Oando Plc, shareholders of the company had cautioned the commission against any cover-up and actions that will be inimical to them.
The shareholders hard alleged that some of their colleagues were been used as conduit to reach out to SEC, adding that the commission should stay away from these elements who parade themselves as shareholders leaders.
The shareholders reported that “External auditors of Oando Plc reported strong doubtful going concern of the group annual financial statement. The group has negative working capital of over N263billion with current liabilities exceeding current assets. The petition further stated that the management of Oando was unable to service its financial obligations. The group has accumulated losses of over N159 billion in its balance sheet as at 2016 year end, “he said.
“Management had been selling assets of the company, especially money-spinning assets such as downstream (Marketing) businesses without meaningful improvement in debts situation. It is planning to sell its share in OER which unfortunately is the last asset belonging to the company. We note that all actions were not enough to fully repay the outstanding debts. Management closed the year 2016 with consistent loss of over N768 billion; significantly worse than the year-end 2015.
“The net loss for the year from continuing operations in 2016 amounts to N25.8billion as reported in the annual audited financial statement. We wish that you use your good offices, as a matter of urgency to save our investment in Oando Plc by looking into these matters, and cause an action to intervene in Oando Plc by removing the present management to allow for proper investigation of the corporate governance abuses and financial mismanagement as noticed in the published full year audited financial statement.
“We believe in the interest of fairness, justice and equity, the CEO, Mr. Wale Tinubu must vacate his seat to allow for proper investigation of all these allegations, corporate governance abuse and financial mismanagement. An independent new management must step in to save our investment in the interest of the integrity of the capital market and investor’s confidence. “
Circular from SEC
- Breach of the provisions of the Investments & Securities Act 2007
- Breach of the SEC Code of Corporate Governance for Public Companies
- Suspected insider Dealing
- Related party transactions not conducted at arm’s length
- Discrepancies in the shareholding structure of Oando Plc. Etc.
