NSE suspends Chevron shares

Friday Ekeoba, Lagos - 22.04.2008

THE shares of Chevron Nigeria Plc have been suspended from trading on the floors of the Nigerian Stock Exchange (NSE) following the divestment of the company’s offshore partner, Chevron USA, from the local company.

The NSE took this decision on Monday owing to alleged failure by Chevron Nigeria to make known to the self regulatory body, the exit from the company of its foreign partner which owns 60 per cent of its total holdings.

Speaking on Monday, Mr. Ekene Okafor, Head of Information and Technology of the NSE, said the exchange took the decision to prevent investment in the company as the issue of divestment may have negative effects on its share price.

He noted that when the company formally approaches the exchange to explain in detail, what the situation of things in the company was and if it was satisfied it the suspension might be lifted.

A stockbroker who spoke with the Nigerian Tribune but would not want his name in print, said Chevron Nigeria action on the divestment issue contravene the laid down principles of operation of a quoted company in the corporate world.

He said that Chevron Nigeria was at the verge of transferring it shares and did not do what it ought to do as quoted companies, noting that Chevron was suppose to get clearance from the NSE before embarking on such divestment of its shares.

He noted that after suspension, if it eventually clears with the authority and the authority was satisfied, “of course they would lift the suspension.”