Dangote, Otedola rivalry: NSE suspends Nova over AP shares



 

For background, see:

 https://nigerianmuse.com/20090326003702zg/nigeriawatch/officialfraud/star-information-ap-s-case-against-aliko-dangote-and-nova-finance-securities

 

TRIBUNE

AP Shares Price Manipulation proved: NSE suspends Anenih son’s company

From Friday Ekeoba and Bolaji Ogundele – 27.03.2009

THE Nigerian Stock Exchange (NSE) on Thursday suspended Nova Finance and Securities Limited from further participation in transactions on the floor of the exchange following its alleged complicity in the manipulation of share prices of African Petroleum (AP).

Also, the company with branches in Ibadan and Port Hacourt and owned by the son of former PDP board of trustees chairman, Chief Tony Anenih, Mr. Ugene Anenih, was fined N500,000 from the effective date of suspension until the fine was paid.

In a statement made available to the Nigerian Tribune and signed by the secretary to the council of the NSE, Mrs. Josephine Igbinosun, the council considered the allegations in line with the Rules and Regulations of the NSE which impose on Dealing Members the responsibility to act with utmost regard to market integrity and the ethics of the profession.

She said investigation and findings of the NSE revealed that activities of the broking firm “constitute a breach of Articles 103 and 107 of our Rules and Regulations which preclude our Dealing Members from creating a false market on a specific security to effect a change in its price.”

According to her, “Consequently, the Council of The Exchange has suspended Nova Finance and Securities Limited from all capital market activities and a fine of N500,000 per day has been imposed on the firm from the effective date of suspension until the fine is paid,” she added.

However, the NSE was silent on allegation made against Alhaji Aliko Dangote, first vice president of the Exchange, who the African Petroleum Plc alleged, masterminded the buying and selling of its shares.

AP, in an advertorial in some national newspapers on Monday, alleged that Nova Finance and Securities Limited, “acting under the instruction of and with active support and connivance of Alhaji Aliko Dangote, had been primarily responsible for the steep decline in the value of the shares of AP Plc, on the floor of the Nigerian Stock Exchange.”

In the advertorial, AP stated that its investigations revealed that “in the last eight weeks, there has been a premeditated and orchestrated ‘crossing’ of AP Plc shares amongst similar entities owned and controlled by either of Alhaji Aliko Dangote or Nova Finance and Securities Limited.”

It will be recalled that AP, whose share was marked down at N273 from N300 during its public offer last year, has now had it whittled down to N48.91, as of Tuesday, causing the phenomenal loss of N250 billion to the shareholders.

In its sanction on AP, the NSE noted that the petroleum marketing company’s avalanche of advertorials on the alleged manipulation was a breach of The Exchange’s Post Listing Requirements on information dissemination by Quoted Companies.

“The companies are obliged to inform The Exchange of any matter that affects their operations before going to the press. African Petroleum Plc has brought the integrity of information emanating from the Central Securities Clearing System (CSCS) Limited to ridicule by publishing what was purported to be CSCS document and we wish to assure the investing public of the confidentiality of their records at the CSCS.

“The published document by African Petroleum Plc is definitely NOT A CSCS Document. Consequently, the Council of The Exchange has also imposed a fine of N300, 000 (three hundred thousand Naira) flat on African Petroleum Plc for contravening the Post Listing Requirements,” she added.

In another development, Nigeria lost a total of $720 million in the last four months as a result of the closure of the Soku Gas Plant in Akuku-Toru Local Government Area of Rivers State.

The facility operated by Shell Petroleum Development Company (SPDC), was shut down on November 27, 2007 as a result of the unending activities of oil thieves and militants.

The plant was inaugurated in 1999 and could produce 577million/scf per day with an export capacity of 1100mm scf/d and 30,000bb. SPDC’s Head of Operations, Swamp 1, Mr. Boma Brown, said in an interactive with journalists in Port Harcourt on Thursday that the closure of the facility was in observance of the company’s core values, noting that illegal bunkering activities near the gas plant had threatened the operation of the plant.

 

 

Daily Independent (Lagos)

Nigeria: NSE Sanctions Nova, AP Over Shares Scam

Kingsley Ighomwenghian

27 March 2009

African Petroleum and Nova Finance and Securities have been sanctioned by the Nigerian Stock Exchange (NSE) over alleged share price manipulation.

The NSE on Wednesday announced the suspension of Nova Finance, and the company is to pay N500,000 per day from the date of suspension to the day it pays up.

AP is to pay N300,000 for bringing the NSE and its depository, the Central Securities Clearing System Limited, into disrepute.

Nova Finance, allegedly in league with Aliko Dangote, NSE Vice President and Dangote Group President, was accused by AP of deliberately crossing its shares daily for eight consecutive weeks, thereby eroding their value.

A statement issued by NSE Secretary, Josephine Igbinovia, said Nova Finance was found guilty of breaching Articles 103 and 107 of NSE rules which “preclude dealing members from creating a false market on a specific security to effect a change in its price.”

The statement noted that the NSE “carefully examined the recent alleged manipulation of share prices of African Petroleum through incessant buy and sell transactions by Nova Finance & Securities Limited.”

It slammed AP for making it a media issue, in breach of post listing requirements on information dissemination by quoted companies.

“Companies are obliged to inform (the NSE) of any matter that affects their operations before going to the press.

“(AP) has brought the integrity of information emanating from the Central Securities Clearing System (CSCS) Limited to ridicule by publishing what was purported to be an CSCS document.

“(However), we wish to assure the investing public of the confidentiality of their records at the CSCS. The published document by (AP) is definitely not a CSCS document.

“Consequently, the Council of (the NSE) has also imposed a fine of N300,000 flat on (AP) for contravening the post listing requirements.”

The NSE assured the public of its commitment to market “integrity and enforcement of its rules, regulations, conventions and usages.”

AP had claimed in an advertorial in newspapers that, “to our great disappointment as a company, our investigations revealed that (Nova Finance), acting under the instruction of and with the active connivance of (Dangote), has been primarily responsible for the steep decline in the value of AP shares on the (NSE).”

 

VANGUARD

Dangote, Otedola rivalry: NSE suspends Nova over AP shares

 

Written by Michael Eboh   
Friday, 27 March 2009

LAGOS — THE corporate war between two business moguls, Alhaji Aliko Dangote of Dangote Group and Mr. Femi Otedola, Chairman, African Petroleum took another turn yesterday as the Nigeria Stock Exchange (NSE) suspended Nova Finance and Securities Limited from all capital market activities for breaching the rules of the Exchange in relation to the Shares of AP.

NSE also imposed a fine of N300,000 on AP for breaching its regulation especially as it concerns the confidentiality of information provided the Central Securities Clearing Systems (CSCS), its central depository.  

The NSE disclosed this in a statement on the outcome of its investigations of the allegation of share price manipulation by AP against Nova Finance and Securities Limited and Alhaji Dangote.

It would be recalled that the management of AP had, last week, brought the attention of the entire Nigerian public and authorities of the market to alleged manipulation of its share price, which engendered a free fall in the price of the shares from about N293 per share to about N50 per share within eight weeks.

The statement by AP blamed Nova Finance and Securities Limited and Alhaji Dangote for the continued decline in its share price and called on the Economic and Financial Crimes Commission (EFCC) and other regulatory authorities to ensure full investigation into the issue.

According to the NSE, “The Council of The Nigerian Stock Exchange has carefully examined the recent alleged manipulation of share prices of African Petroleum Plc through incessant buy and sell transactions by Nova Finance & Securities Limited (a Dealing Member Firm).

The Council considered the allegations in line with the rules and regulations of the NSE which imposes on dealing members the responsibility to act with utmost regard to market integrity and the ethics of the profession. Our investigations and findings revealed that activities of Nova Finance & Securities Limited constitute a breach of Articles 103 and 107 of our rules and regulations, which preclude our Dealing Members from creating a false market on a specific security to effect a change in its price.  Consequently, the Council of The Exchange has suspended Nova Finance & Securities Limited from all capital market activities and a fine of N500,000 per day has been imposed on the firm from the effective date of suspension until the fine is paid.â€

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