Ghana Stock Exchange Suspends CPC For Poor Performance
| Updated Aug 30, 2017 at 8:00am
Ghana Stock Exchange (GSE) has suspended Cocoa Processing Company, (CPC) for its poor performance on the stock market.
This latest suspension follows an earlier announcement this week, of five companies suspended after which two have been re-admitted to trade.
According to the Ghana Stock Exchange, the decision was due to the failure of the said companies to publish their financial accounts, hold Annual General Meetings as well as pay for listing fees.
Interacting with the media on Tuesday, the Deputy Managing Director of the Ghana Stock Exchange, Ekow Afedzie explained that the move forms part of a normal procedure to improve the stock market.
“It’s normal. It is part of our enforcement obligations. It is normal”. Mr. Afedzie responded to a question raised by a journalist.
Mr. Afedzie said they will get tougher on listed companies as it sanctions another company for non compliance of its rules and regulations.
Cocoa Processing Company (CPC) which produces Ghana’s flagship chocolate, the Golden Tree brands.
CPC’s performance on the GSE has been abysmal over the years. The situation was attributed to the growing debt of the company.
CPC is said to be unable to purchase cocoa from the COCOBOD to process for chocolate and beverages.
Workers of CPC in recent times appealed to government to delist the company from the Ghana Stock Exchange (GSE) due to its dwindling performance over the years.
According to the workers, it will be financially viable for government to delist and control the company since it is the majority shareholder.
Currently, COCOBOD owns about 57 percent of the shares, while the Ministry of Finance owns about 26 percent, with SSNIT controlling about 11 percent.
The remaining shares which is less than 10 percent is owned by individuals.
CPC which produces Ghana’s flagship chocolate, the Golden Tree brands has been performing poorly on the bourse for some time now.