Ghana Stock Exchange takes action against non-performing companies

The Ghana Stock Exchange (GSE) on Wednesday said it was taking actions against some non-performing listed companies in line with its listing rules for poor financial performance and inability to hold annual general meetings.

In a statement the GSE said the move was to protect investors and to ensure an orderly market.

It said one of the companies, Golden Web Limited, shall be compulsorily delisted at the end of March 2018.

“The financial situation of Golden Web Limited is significantly threatened, since the Company’s financial performance has weakened considerably over time. The Company is also not compliant with its obligations to GSE with regard to the holding of its Annual General Meetings,” the GSE said in a statement.

The GSE said three other companies: Aluworks Limited; Cocoa Processing Company Limited; and Clydestone Ghana Limited had been put on a watch list till end of May 2018 on account of the fact that their financial situations are significantly threatened.

“At the end of the watch list period, the GSE will assess whether there have been improvements in their financial situations and decide on their continued listing status,” the statement said.

It said Pioneer Kitchenware Limited had written to the GSE of its intention to voluntarily delist and has been given up to the end of May 2018 to carry through its voluntary delisting intention.

Meanwhile, the GSE has accepted a proposal by the Executive Chairman of Transaction Solutions Ghana Limited (Transol) to, either merge Transol with Clydestone Ghana Limited (a sister company) or voluntarily delist Transol.

The company has been instructed to decide on the course of action and complete the process by March 30, 2018.

Under Rule 13(1) of GSE’s Listing Rules, “The Council may at any time and in circumstances as it thinks fit, suspend or cancel a listing and shall do so to protect investors and to ensure an orderly market”.

Among the reasons for which GSE may delist a company is where the financial situation of the company is significantly threatened, as provided under Rule 13(4)(g) of GSE’s Listing Rules; or where the company consistently fails to comply with GSE’s Rules and directives, as per Rule 13(4)(h) of GSE’s Listing Rules.