The management of Oando plc has obtained a court order to halt the suspension of trading in its shares and a forensic audit planned by the Securities and Exchange Commission (SEC), court documents seen by Reuters showed yesterday.
Shares in Oando Plc were frozen at N5.99 on Monday until further notice, the stock exchange said after SEC ordered a forensic audit into the company.
The commission suspended trading in the stock for 48 hours last week, saying it was investigating complaints about insider trading and discrepancies in its ownership structure.
“The actions taken by the SEC, the suspension of the shares of the company and the initiation of a forensic audit, are prejudicial to the company,” an Oando spokesman told Reuters.
SEC declined to comment on the court order, saying that it was yet to receive the notice.
According to the report by 1236 GMT, only 42,923 shares at the firm’s fixed share price of 5.99 had traded. The company recorded no trades on Monday. A regulatory source said the freeze aimed to avoid volatile trading pending the outcome of the audit.
Amidst the technical suspension of Oando shares on the trading floor of the Nigerian Stock Exchange, the NSE has informed that trading would still go on in Oando shares.
A notice signed by Tinuade Awe, general counsel, head of regulation, NSE said shareholders can now trade their shares but the trading activity will not lead to a change in price.
“Dealing members are referred to our market bulletins of Wednesday, October 18, 2017 (NSE/LARD/LRD/MB05/17/10/18) notifying them that effective Friday, October 20, 2017 and until further directive, the shares of Oando Plc (“Oando” or “the company”) will be placed on technical suspension; and that of Friday, October 20, 2017 (NSE/LARD/LRD/MB07/17/10/20) informing them that the shares of Oando were still on full suspension as the process of converting from full to technical suspension was yet to be completed” the statement read.
“Please be informed that effective today, Monday, October 23, 2017, the shares of Oando Plc have been placed on technical suspension. Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists.”
SEC had appointed Deloitte to lead the audit together with lawyers and stockbrokers, at a cost of N160 million, which would be borne by Oando.
A company source has said the petitions centred around the ownership of some Oando shares bought through an investment vehicle at the time the company bought the Nigerian unit of U.S. firm ConocoPhillips for $1.65 billion in 2014.
In July, Oando shares fell close to a one-month low after the regulator said it was investigating the firm’s shareholding structure following the ConocoPhillips unit acquisition.
Oando has gained 27 percent this year after a sharp fall last year. It last traded at N5.99.
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