BY NKECHI NAECHE——Securities and Exchange Commission, (SEC) on Wednesday said shares of Oando Plc were placed on technical suspension in October 2017 upon the announcement of forensic audit which aimed to protect investors as a short term measure.
Suspensions are typically intended for a short period to ensure market stability and thereafter lifted to allow market dictates.
However, the suspension of the shares of Oando plc was prolonged due to several litigations by Oando and other shareholders contesting the propriety of the forensic audit and technical suspension. All
Litigations have now been withdrawn, the independent forensic audit by Deloitte is ongoing and the primary result is expected.
Accordingly, the SEC directed the NSE to lift the technical suspension and allow market determination of the share price.
The Commission acted in the interest of shareholders and would continue to protect the interest of all the investors and other shareholders in the capital market.
SEC will update relevant stakeholders on the outcome of the forensic audit.
Meanwhile, the Nigerian Stock Exchange (NSE), today lifted the technical suspension placed on Oando shares with the Securities and Exchange Commission (SEC), ordering a reversal three hours later.
The Exchange, in a letter entitled: “Notification of Lifting of Technical Suspension on the Shares of Oando,’’ said SEC on April 9, directed it to lift the suspension.
“We refer to our bulletins of 18, 20 and 23 October, 2017 regarding the directive of the SEC to the Nigerian Stock Exchange to place the shares of Oando Plc on Technical Suspension.
“Please be informed that on April 9, 2018, the commission directed the Exchange to lift the technical suspension placed on the shares of Oando.
“On receipt of the commission’s directive, the Exchange put the process in place to lift the technical suspension, including testing on its trading system.
“Further to the commission’s directive of April 9, please be advised that effective today, April 11, 2018, the Exchange lifted the technical suspension placed on the shares of Oando.
“Consequently, there is no longer any impediment to price movement in Oando shares.
“The above is for your information and records update please,” said the Exchange.
However, three hours after lifting the technical suspension on Oando’s shares, the suspension was reversed by the NSE.
