In a notice issued to investors on Thursday, the Johannesburg Stock Exchange (JSE) suspended trading of Oando Plc shares.
The Nigerian Stock Exchange (NSE) yesterday issued a notice suspending trading in the stock following instructions from the Securities and Exchange Commission (SEC). The JSE, in its press release said it had taken the decision following correspondence it had received yesterday from both the NSE and SEC.
Oando listed its entire capital on the JSE in November 2005, becoming the first African company to have a cross border listing. The stock last traded at 30 rand on the JSE. Oando’s subsidiary, Oando Energy Resources (OER) also listed on the Toronto Stock Exchange in 2012 but de-listed in 2016 following the 100% acquisition of the subsidiary.
The company has been embroiled in a tussle with two shareholders Dahiru Mangal and Gabriel Volpi who petitioned the SEC over alleged financial recklessness by management and inadequate representation on the board.
SEC, then launched an investigation into the allegations. Based on its preliminary findings, it instructed the Nigerian bourse to suspend trading in the stock while it conducts a forensic audit. The suspension will initially be total, then subsequently limited to a price freeze.
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Oando Plc in a press release issued yesterday, acknowledged the suspension and stated that it would provide a comprehensive statement on the company’s position as soon as possible.