Oando crisis worsens as firm is suspended from Johannesburg Stock Exchange

Nigerian oil company, Oando. [Photo credit: Guardian Newspaper]

The Johannesburg Stock Exchange, JSE, on Thursday suspended trading in the shares of Nigerian oil company, Oando.

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.

According to a notice by the JSE seen by PREMIUM TIMES on Thursday, the suspension was effected based on a correspondence between the Nigerian bourse and JSE.

“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 09:00 a.m. SA time, pending clarification following the review of subsequent correspondence received on 18 October 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.”

In its response on Wednesday to the suspension by the NSE, the management of Oando plc said it was still reviewing documents sent to it by the NSE, and SEC.

In its suspension notice, Tinuade Awe, General Counsel and Head of Regulation at the NSE, said the full suspension is effective for 48 hours from Wednesday to Friday, after which it would commence a technical suspension until further directive.

Ms. Awe also affirmed that in the 48-hour period commencing Wednesday, there will be no trading in the shares of Oando Plc, adding that from Friday, investors will be able to trade in Oando Plc’s shares but such trading will not result in any movement in the price of the shares.

Apart from the Nigerian bourse, Oando is listed in Johannesburg.

Trading on the company’s stocks were suspended on the Toronto stock exchange.

Oando has in recent time been enmeshed in crisis.

A group of aggrieved shareholders had attempted to disrupt its Annual General Meeting in Uyo, Akwa Ibom State over allegations of gross misconduct levelled against the management of the oil firm.

The irate shareholders also called for the removal of Wale Tinubu, the company’s Group Chief Executive Officer.

Commenting on the crisis rocking the oil firm on Wednesday, Oando said it would “provide a full statement of the company’s position as soon as possible”.


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  • Sam

    Oando could have avoided all this further losses ,by asking Wale tinubu to leave . Why is it difficult for Nigerians to act beyond self interest ?

    • James Edward

      You answered the question: self interest!

  • Daniel

    Be it in government or the private sector, these thieves are all over.

    What does it take for this Wale Tinubu to step down?

    He must be learning from BAT.

  • Bolaji

    I thought the shares of the company is no longer listed on Toronto stock exchange. Please confirm?

    • Lakeside

      It is not listed on the TSX but it appears to be listed on OTC (Over- The Counter) market which are basically listed in USD. it is listed at $1.07 and I doubt whether it is being traded. You can search for it yourself by going on Yahoo Finance and start typing in Oando under the search for symbol look up and it will find it for you. Alternatively, you can go through MSN Finance or Bloomberg News. Keep in mind that finding the symbol on these websites does not mean that the stock is being traded. For instance, I cannot find it on my bank’s investment website. For some OTC stocks, you have to phone the bank directly to make inquiries and buy if you want. They are usually volatile stocks.

  • James Osborne

    Another Yoruba scam, every corporation run by the Yoruba always end in its wealth stolen and hidden in foreign land, look at our banks it took years before they could resuscitates them after Yoruba domination, Wale has to step down let some else lead this success story before it become mega scam.

    • MilitaryPolice01

      Ethnic jingoist

    • Rumournaire

      Who ran down Savannah Bank? Who took depositors’ funds from the bank out of the country and forced it to fold up? Who ran down African Continental Bank? Get some education, my friend!

  • James Edward

    How can a company’s share price fell from almost N100 to under N8 and people still think the management is doing a good job. Elsewhere this brat would have been shown the door even before now. It took the intervention of the National assembly for SEC to act. Petitions were sent to SEC but they ignored it until the aggrieved shareholders petitioned the NA.

    Shame that a bunch of young Nigerians can so greedy to run down their own company.

  • emmanuel

    Jagaban. Fly wen nor hear word, na im dey follow dead bodi enter grave.
    When in the absence of Ibori, the Lagos camp stripped most downstream assets to invest upstream – deep shore, there was some out smarting.
    But it was all a way of nature asking those who took the peoples money into their pockets to relinquish such.
    No one cheats nature forever.
    Etisalat is gone, Oando, INTEL, and hundreds of thousands of Nigeria businesses are gone with Sai Baba syndrome. By the time Buhari leaves office, Nigeria will be completely dead. The Innosons of this world, Nissan Vehicle Assembly are all gone to sleep.
    Yet Nigeria is out of recession, same lies is chorographed by IMF etc.
    Sai baba

    • Tola

      Ignorance is bliss to some of you. You better educate yourself why the companies are having difficulties. Besides governance issues, they acquired upstream asset of a company when crude was about $100 only for crude price to collapse. They are carrying bloated asset price, which if they clean the books, their share price will be worthless.