Nigeria’s Securities and Exchange Commission (SEC) said on Wednesday
it had ordered the suspension of Oando shares citing concerns about
possible insider trading and the oil company’s shareholding structure.
it had ordered the suspension of Oando shares citing concerns about
possible insider trading and the oil company’s shareholding structure.
The
SEC ordered the Nigerian Stock Exchange to implement a 48-hour
suspension of Oando’s shares after which it would implement a price
freeze until further notice.
SEC ordered the Nigerian Stock Exchange to implement a 48-hour
suspension of Oando’s shares after which it would implement a price
freeze until further notice.
Oando, with dual listings in Johannesburg and Toronto, said it would issue a statement in due course.
Its shares last traded at 5.99 naira in Lagos.
The
regulator said it had carried out a comprehensive review of Oando after
it received two petitions and found related party transactions were not
conducted at arm’s length and discrepancies in its ownership structure.
regulator said it had carried out a comprehensive review of Oando after
it received two petitions and found related party transactions were not
conducted at arm’s length and discrepancies in its ownership structure.
A company source said the petitions centred
around the ownership of some Oando shares bought through an investment
vehicle at the time the company bought ConocoPhillips’ Nigerian business
for $1.65 billion in 2014.
around the ownership of some Oando shares bought through an investment
vehicle at the time the company bought ConocoPhillips’ Nigerian business
for $1.65 billion in 2014.
“The commission
notes that the above findings are weighty and therefore needs to be
further investigated. After due consideration, the commission believes
that it is necessary to conduct a forensic audit into the affairs of
Oando Plc,” the SEC said in a statement.
notes that the above findings are weighty and therefore needs to be
further investigated. After due consideration, the commission believes
that it is necessary to conduct a forensic audit into the affairs of
Oando Plc,” the SEC said in a statement.
It
said a team of auditors, lawyers, stockbrokers and share registrars
would conduct the forensic audit on Oando to ensure independence.
said a team of auditors, lawyers, stockbrokers and share registrars
would conduct the forensic audit on Oando to ensure independence.
The SEC said in July it was investigating Oando’s shareholding structure.
Reuters
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