Market Abuse: Letter from Transcorp Plc to the NSE
April 04, 2011
The letter (as edited):
April 01, 2011
The Director General
Nigerian Stock Exchange
RECENT VOLUME MOVEMENTS IN THE SHARES OF TRANSCORP PLC TRADED ON THE FLOOR OF THE NIGERIAN STOCK EXCHANGE
We write in relation to the above.
On March 31, 2011, a total of 2.51 billion units of Transcorp Plc shares representing 10% of the company’s issued share capital were traded in a single day, the largest volume of a company’s shares traded in one day in the past one year.
The Board of Directors and Management of the company have expressed shock at how such a transaction was approved by the Stock exchange without information to and consent of shareholders and the company. The Board have also been reliably informed by an individual that he has acquired a significant proportion of the shares of the company and plans to take over the business.
A transaction showing more than a 5% interest in the shares of the company should ethically have been disclosed to the company and the Securities and Exchange Commission, but this was not done in this case.
The Board and Management hereby object to such a transaction and request that due process and the provisions of law be allowed where an individual or group of individuals are interested in a controlling stake in the company.
In the interest of over 300,000 shareholders of Transcorp Plc, this letter has been copied to the Securities and Exchange Commission which is hereby put on notice to investigate potential or actual market abuse in this regard.
Transnational Corporation of Nigeria Plc
11, Alfred Rewane Road,
April 1, 2011.
cc: The Director General, Securities & Exchange Commission
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