Tuesday, April 22, 2008
FOLLOWING plans by Chevron Corporation USA to divert its holding from Chevron Oil Nigeria Plc, the Nigerian Stock Exchange’s management yesterday placed the company’s stock on full suspension.
With the development, trading on the company’s stock would be suspended forthwith until information on the purported divestment is made available to the Nigerian Stock Exchange.
At the opening of trading yesterday on the Exchange, the company’s stock was not traded, indicating that the suspension may have taken effect immediately.
The price of the stock had closed last Friday at N290 per share, down from N300 per share at which it opened for trading.
Speaking yesterday on the floor, the Head of Information and Control of NSE, Mr. Kene Okafor said the Exchange took this decision, owing to allege contravention by Chevron Nigeria to brief the regulatory authorities, the exit from the company of its foreign partner who owns 60 per cent of its total holding.
He added that the NSE took the pro active action in order to prevent investors investment in the company as the issue of diversement may have negative effect on its share price.
He noted that the suspension would be lifted if the company formerly approaches the Exchange to explain in details the situation of things.
A stockbroker, who spoke with The Guardian on the condition of anonymity, said Chevron action on the diversement issue contravene the laid down principle of operation of a quoted company in the corporate world.
He said Chevron Nigeria was at the verge of transferring its shares and did not do what they ought to do as a quoted company, noting that they are suppose to get clearance from the NSE before embarking on such diversement of shares.
“They are already in the verge of transferring but they did not do what they are supposed to do as a quoted company. They are suppose to get clearance of such material information from stock exchange before they do so. It happened that they try to sell and transfer without clearing and notifying the NSE.
“After the suspension, if they eventually clear with the authority and they are satisfied, of course they will lift the suspension,” he said.
Tuesday, April 22, 2008
Divestment plan: Exchange places Chevron on full suspension
FOLLOWING plans by Chevron Corporation USA to divert its holding from Chevron Oil Nigeria Plc, the Nigerian Stock Exchange’s management yesterday placed the company’s stock on full suspension.
With the development, trading on the company’s stock would be suspended forthwith until information on the purported divestment is made available to the Nigerian Stock Exchange.
At the opening of trading yesterday on the Exchange, the company’s stock was not traded, indicating that the suspension may have taken effect immediately.
The price of the stock had closed last Friday at N290 per share, down from N300 per share at which it opened for trading.
Speaking yesterday on the floor, the Head of Information and Control of NSE, Mr. Kene Okafor said the Exchange took this decision, owing to allege contravention by Chevron Nigeria to brief the regulatory authorities, the exit from the company of its foreign partner who owns 60 per cent of its total holding.
He added that the NSE took the pro active action in order to prevent investors investment in the company as the issue of diversement may have negative effect on its share price.
He noted that the suspension would be lifted if the company formerly approaches the Exchange to explain in details the situation of things.
A stockbroker, who spoke with The Guardian on the condition of anonymity, said Chevron action on the diversement issue contravene the laid down principle of operation of a quoted company in the corporate world.
He said Chevron Nigeria was at the verge of transferring its shares and did not do what they ought to do as a quoted company, noting that they are suppose to get clearance from the NSE before embarking on such diversement of shares.
“They are already in the verge of transferring but they did not do what they are supposed to do as a quoted company. They are suppose to get clearance of such material information from stock exchange before they do so. It happened that they try to sell and transfer without clearing and notifying the NSE.
“After the suspension, if they eventually clear with the authority and they are satisfied, of course they will lift the suspension,” he said.
