Nigerian integrated energy solutions provider, Oando PLC, is under investigation by the Nigerian Securities and Exchange Commission (SEC) over alleged malpractices in its financial statements.
According to a report by Nigerian newspaper, Punch, the investigation was triggered by series of petitions filed by some foreign investors in relation to some changes in the shareholding structure of the company following a 2014 deal in which Oando paid $1.65 billion for the acquisition of oil producing assets owned by ConocoPhillips.
People listen to CEO of Oando Jubril Tinubu’s speech during the second day of the World Economic Forum Meeting on Africa, at the Cape Town International Convention Centre on May 9, 2013, in Cape Town. AFP PHOTO / RODGER BOSCH
The SEC has since sent a formal letter to the company as it examines if the oil regulations have been breached. Meanwhile, the market has reacted negatively to the news. The company’s shares shed 9.58% as at close of trading on Friday to trade at N7.55 ($0.02) per share, down from N8.35 ($0.23).
Oando has in the meantime released a press statement calling the petitions unsubstantiated, misleading and defamatory, and has said the company is fully co – operating with the SEC in the discharge of its duties by providing all appropriate clarifications and rebuttals on the matters raised in the said correspondence.
Oando, a $250 million (market cap) energy conglomerate with assets in the downstream, midstream and upstream sectors, is one of Nigeria’s largest independent oil companies and is listed on both the Nigeria and South Africa Stock Exchanges.
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