SEC suspends Oando shares from stock market

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The Securities and Trade Commission has ordered the Nigerian Stock Trade to suspend investing on the shares of Oando Plc.

The fee mentioned in a round yesterday it experienced carried out a comprehensive review of the petitions by Alhaji Dahiru Barau Mangal and Ansbury Integrated and created the adhering to conclusions among other individuals Breach of the provisions of the Investments and Securities Act 2007 Breach of the SEC Code of Company Governance for Public Corporations Suspected insider working Relevant occasion transactions not conducted at arm’s length and Discrepancies in the shareholding structure of Oando Plc. and so forth.

“The commission’s primary function as apex regulator of the Nigerian cash marketplace is to regulate the current market and defend the investing community. The fee notes that the earlier mentioned conclusions are weighty and as a result needs to be further more investigated.

“After due consideration, the commission thinks that it is vital to perform a forensic audit into the affairs of Oando Plc. This is pursuant to the statutory duties of the commission as supplied in Segment 13(k), (n), (r) and (aa) of the ISA 2017,” the round examine in part.

In accordance to SEC, to ensure the independence and transparency of the workout, the forensic audit shall be done by a consortium of industry experts manufactured up of auditors, attorneys, stockbrokers and registrars.

“To even further make sure that the interests of all shareholders of Oando Plc are preserved for the duration of the study course of the physical exercise, the commission directed the Nigerian Stock Exchange to put the shares of Oando Plc on specialized suspension,” it additional added.

Nonetheless, in watch of the fact that it is not technologically possible for the trade to impact a technical suspension apart from just after 48 hours, it directed as follows

“Effective for 48 hours from these days, 18 Oct 2017 to 20 Oct 2017, the Nigerian Inventory Exchange should really put into practice a complete suspension in the buying and selling of the shares of Oando Plc and Efficient from 20 Oct 2017 and until finally even further directive, the trade should really put into action a technological suspension in the shares of Oando Plc.”

External auditors of Oando Plc documented potent, doubtful problem on the group’s yearly economic assertion. The team has damaging doing the job capital of around N263bn with existing liabilities exceeding present property.

Oando shut the calendar year 2016 with dependable reduction of in excess of N768bn noticeably worse than the year-conclusion 2015. The net reduction for the yr from continuing operations in 2016 amounts to N25.8bn as noted in the once-a-year audited fiscal assertion.

[Daily Trust]



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