NSE suspends Dangote Flour, Transcorp, 46 others for non-rendition of accounts

BY  MICHAEL EBOH
The Nigerian Stock Exchange, NSE, has placed the shares of Dangote Flour Mills Plc, Transnational Corporation of Nigeria Plc, Transcorp, Forte Oil Plc, formerly African Petroleum Plc and 45 others on technical suspension, for failing to present to the authorities, their financial statements for the 2010 financial year, seven months after the end of the financial year and five months to the end of the current financial year.

A breakdown of the companies affected shows that insurance companies were the most hit, with 11 companies affected, five companies in the Food/Beverages & Tobacco sub-sector, four companies in the Information and Communication Technology sub-sector, three each in the Other Financial Institution sub-sector and Industrial/Domestic Product sub-sector, two each from the Chemical and Paints, Packaging and Petroleum (Marketing), conglomerates, construction, Healthcare, Hotel and Tourism sub-sectors, one each from the Agriculture/Agro-Allied, Breweries, Computer & Office Equipment, Engineering Technology, Footwear, Media, Printing and Publishing and Textiles sub-sectors.

However, one of the companies listed by the NSE, Omatek Ventures Plc, informed Vanguard that their name must have been included due to an error on the part of the NSE.

According to Mr. kayoed Yeku, spokesperson for the company, their results for the 18 months ended, December 31, 2010 was presented and duly acknowledged by the NSE.

To this end, he said that the company has written to the NSE, asking it to remove its name from the list of defaulters.
According to the statement announcing the suspension of the defaulting companies, the NSE said that the shares of the companies will be placed on suspension for the next one month, after which the NSE will decide on further actions against the companies.

The NSE noted that during the period of the technical suspension, the companies’ share will be traded upon, but there would be no movement on the prices of the shares.

The statement reads, “The affected companies have not submitted their Financial Statements for the year ended, December 31, 2010. This is in violation of the Post-Listing Rules of The Exchange as contained in Key Issue No. 5 (Annual Accounts Procedures), which states that ‘Audited annual accounts of companies ought to be submitted within three months of year end.’

”The Nigerian Stock Exchange and the investing public need timely financial information from listed companies in other to facilitate stock transactions that are based on market fundamentals.  This is essential for fair price discovery and investor confidence in our capital markets.

“Pursuant to Article 90 of The Exchange’s rules, which states that the Exchange may at its discretion at any time suspend or lift suspension in trading in particular securities, these companies’ stocks will be on technical suspension for the next one month; after which the Exchange reserves the right to take further action.

The companies are: FTN Cocoa Processors Plc, Jos International Breweries Plc, IPWA Paints Plc, Premier Paints Plc, Omatek Ventures Plc, Scoa Nigeria Plc, Transnational Corporation Plc, Cappa & D’Alberto Plc, G.Cappa Plc, Nigerian Wire & Cable Plc, P.S. Mandrides & Company Plc and Dangote Flour Mills Plc.

Others are Nigerian Bottling Company Plc, Union Dicon Salt Plc, UTC Nigeria Plc, Lennards, Ekocorp Plc, Morison Industries Plc, Ikeja Hotel Plc, Tourist Company Of Nigeria Plc, First Aluminium Plc, Aluminium Manufacturing Company Of Nigeria Plc, Vono Products Plc, Etranzact Plc, Equity Assurance Plc, African Alliance Insurance Plc, Great Nigeria Insurance Plc, Guinea Insurance Plc,.

The rest are International Energy Insurance Plc, Lasaco Assurance Plc, Linkage Assurance Plc, Oasis Insurance Plc, Staco Plc, Standard Alliance Insurance Plc, Crusader (Nigeria) Plc, Chams Plc, MTech Plc, MTI Plc, Invesment & Allied Assurance Plc, Daar Communications Plc, Nigeria Energy Sector Fund, Resort Savings & Loans Plc, Studio Press (Nigeria) Plc, West Africa Glass Industries Plc, Forte Oil (African Petroleum), Afroil Plc, Longman Plc, United Nigeria Textiles Plc.