Why we lifted suspension on Oando’s shares –SEC
As tongues continued to wag over the lifting of the suspension placed on shares of embattled Oando Plc, by the Nigerian Stock Exchange (NSE), the Securities and Exchange Commission (SEC) on Thursday said the action was sequel to the withdrawal of all litigations by the company and shareholders who earlier challenged the suspension.
The suspension of shares from trading on the floor of the NSE usually lasts for a short period, but that of Oando extended beyond the normal period owing to litigations instituted by the shareholders and Oando.
Speaking to journalists on the development yesterday in Abuja, the Acting Director General, SEC, Dr. Abdul Zubair, said, “as a result of the court cases, the Commission, as a law abiding agency of government, was constrained to either continue with the forensic audit or lift the suspension.
“However, with the withdrawal of the suits in February, the forensic audit has resumed while the technical suspension has been lifted.”
Zubair explained that there was no controversy over the lifting of the suspension on trading in the shares of Oando Plc as being insinuated in some quarters. However, there were reports that trading in Oando’s shares resumed on Wednesday, but was later halted and then resumed shortly after, thus leading to confusion among capital market players.
“Before the shares’ suspension decision was reached, the management of Oando, as well as the umbrella body of all shareholders’ unions in the company visited the Commission and made written submissions for the suspension to lifted. Again, we are aware of the withdrawal of all litigations by the company and shareholders challenging the suspension.
Meanwhile shares of Oando, rose 10 per cent Thursday after the regulator lifted a suspension placed on trading on it since october 2017. The company’s shares jumped to N6.60 on the Nigerian bourse after closing at N6.30 on Wednesday. The shares had traded at N5.99 before it was suspended in 2017.