Johannesburg Stock Exchange suspends crisis-ridden Oando 

 

Oando Plc CEO Wale Tinubu

By Jite Eriabie 

The Johannesburg Stock Exchange (JSE) on Thursday suspended trading in the shares of embattled Nigerian oil company, Oando Plc. 

The suspension came after an order by Nigeria’s Securities and Exchange Commission (SEC) prompted the Nigerian Stock Exchange (NSE) to suspend the embattled company on Wednesday.

According to a notice by the JSE on Thursday, the suspension was effected based on a correspondence between the Nigerian bourse and JSE.

“The Company has received communication from its primary listing, the Nigerian Stock Exchange (NSE), that the Securities and Exchange Commission (SEC) have 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 clarification following the review of subsequent correspondence received on 18 October 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.”

In its suspension notice, Tinuade Awe, General Counsel and Head of Regulation at SEC, said the full suspension is effective for 48 hours fromWednesday to Friday, after which it would commence a technical suspension until further directive.

Awe also affirmed that in the 48-hour period commencing Wednesday, there will 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.

Oando has in recent time been enmeshed in crisis.

A group of aggrieved shareholders had disrupted its Annual General Meeting in Uyo, Akwa Ibom State in September over allegations of gross misconduct levelled against the management of the oil firm.

The angry shareholders also called for the removal of Wale Tinubu, the company’s Group Chief Executive Officer.

Commenting on the crisis rocking the oil firm on Wednesday, Oando said it would “provide a full statement of the company’s position as soon as possible”.   

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