Chevron Plc’s full suspension lifted.
April 23rd, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
By Tunde Brown
In just a day after news filtered in on the full suspension placed on the Chevron Plc shares on the floor of the Nigerian Stock Exchange, the company has moved swiftly in reaction to the action by the exchange, setting in motion a mechanism to douse the tension generated by the widespread speculations that has made it necessary for the exchange to take a pre-emptive measure in protecting the interest of the investing public. The company has made undertaking to meet with the exchange in order to explain issues surrounding the shares of its core investor.
It would be recalled that recently, there has been speculations bordering on a likely divestment from Chevron Plc. Reports revealed the planned divestment of up to 60 per cent stake by United States Based Chevron Corporation from its downstream operations in Nigeria. This was followed by a price trend that paced into historical highs. With the share price closing on the 18th of April 2008 at N290.00, the Nigerian Stock Exchange on Monday, placed the stock on full suspension on fresh indications of a divestment move by its owners. The speculation on the one hand is that Chevron USA has finally made up its mind to embark on a part or whole divestment of its shareholding from its Nigerian operations. The other presumption has to do with AP’s interest to buy into the company as evident in recent but yet unsubstantiated information.
The Head of information technology of the NSE, Mr. Ekene Okafor noted then, that the action was necessary to protect investors from any negative consequence the development may have on the company’s share price. He further stated that the Exchange may lift the suspension if the company advances convincing explanations behind the speculations currently going the rounds. With the Chevron Plc’s undertaking, the full suspension was lifted yesterday.
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