24 October 2017

Nigeria: Oando Crisis - Firm Keeps Mum As NSE Places Shares On Technical Suspension

Photo: Premium Times
Nigerian oil company, Oando.

The Nigerian Stock Exchange, NSE, on Monday placed shares of Oando Plc on technical suspension.

A notice posted by the exchange said the company's shares will henceforth be available for trading but there will be no price movement while the technical suspension subsists.

The NSE had last Wednesday suspended trading in the shares of Oando plc for two days.

The Exchange in a notice said it was acting based on the directive of the Securities and Exchange Commission, SEC.

PREMIUM TIMES had earlier reported that SEC directed the full suspension on trading in the shares of the oil firm following petitions forwarded to it by aggrieved stakeholders.

In its notice, signed by Tinuade Awe, General Counsel and Head of Regulation at the NSE, the Exchange explained that the full suspension is effective for 48 hours from Wednesday to Friday, after which it would commence a technical suspension until further directive.

"A full suspension is the halt of trading activities in a listed security for a period," Ms. Awe said.

"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."

On Monday, the Exchange confirmed it had lifted the full suspension on the firm.

"Dealing Members are referred to our market bulletins of Wednesday, 18 October 2017 (NSE/LARD/LRD/MB05/17/10/18) notifying them that effective Friday, 20 October 2017 and until further directive, the shares of Oando Plc ("Oando" or "the Company") will be placed on technical suspension; and that of Friday, 20 October 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.

"Please be informed that effective today, Monday, 23 October 2017; the shares of Oando Plc have been placed on technical suspension.

Nigeria Stock Exchange (NSE)

"Thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists," the NSE's notice said.

Oando had in its response last week said it would address the development in a statement it planned to release later.

But as at Monday evening, the company was yet to issue its statement.

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