The Johannesburg Stock Exchange (JSE) has suspended trading in shares belonging to Oando Plc following an exchange of correspondence between it and the Nigerian Stock Exchange (the primary Exchange on which Oando is listed).
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 till the regulator concluded investigations on the company.
According to a statement issued by JSE’s on Thursday, Oando’s listing was suspended following the review of subsequent correspondence received on October 18 from the Nigerian Stock Exchange and SEC.
SEC said it made the following findings at the end of its investigation into the breach of the provisions of the Investments & Securities Act 2007.
“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 9:00 am SA time, pending clarification following the review of subsequent correspondence received on October 18, 2017 from the NSE and SEC and will provide a full statement of the company’s position as soon as possible.”
Recall that recently, a group of shareholders of Oando called for the removal of Wale Tinubu, the company’s Group Chief Executive Officer over allegations of gross misconduct leveled against the management of the oil firm
Oando did not respond specifically to the JSE suspension on Thursday, but insisted that it had received a communication from the NSE suspending trading in its shares, as directed by SEC, and that it was reviewing the correspondence.
The oil firm, however, said it would state its position as soon as possible as it was committed to acting in the interest of all shareholders.