Oando asks JSE to suspend trading on shares

A management source at Oando Nigeria Plc has disclosed that the company has communicated with the Johannesburg Stock Exchange (JSE) to suspend trading on its shares following the technical suspension of trading on same by the Securities and Exchange Commission in Nigeria.

The SEC in its circular stated: “To further ensure that the interest of all shareholders of Oando Plc are preserved during the course of the exercise, the commission directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension.”

The source said, “in the light of the development in Nigeria, we communicated with the JSE and shared with them the letters received from the SEC and we felt it is only appropriate that we suspend trading on the JSE until we are able to resolve what has happened.”

However, Oando Company Secretary, Ayotola Jagun, in a press briefing, yesterday, said: “The company is still reviewing the position of the communications we received legally and we will be coming out with a full statement within the next 48 hours.

“We are trying our best to do this quickly so that the market is clear on our position on the matter.

“The communication we received is in two folds; the letter from the Nigerian Stock Exchange notifying us that they have been directed by the Securities and Exchange Commission to suspend trading in the shares of the company.

“We also received two letters from the SEC; one addressed to the group chief executive and the other to the chairman of the company.

“We have to look through the contents of these letters, consult internally and with our counsel and provide a response.”

Shareholders who spoke with Daily Trust expressed concern over the suspension of trading on the company’s shares, noting that Ikeja Hotels is currently undergoing a forensic audit and trading on its shares were not suspended.