GSE updates: Latest notice regarding non-performing stocks

non-performing companies _gse

The Ghana Stock Exchange (GSE) announce to the general public, latest development regarding the fate of six non-performing  listed companies. The affected companies are:

  1. Golden Web Limited (GWEB)
  2. Transaction Solutions Ghana Limited (TRANSOL)
  3. Aluworks Limited (ALW)
  4. Cocoa Processing Company Limited (CPC)
  5. Clydestone Ghana Limited (CLYD)
  6. Pioneer Kitchenware Limited (PKL)

Golden Web Limited

Golden Web Limited is to be forcibly delisted from the stock market at the end of March 2018. According the GSE, this is in line with the GSE Listing Rule 13(1):

“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”.

The GSE is mandated to delist a company when the company’s financial situation is significantly threatened or when the company consistently fails to obey GSE Rules and directives. The financial status of Golden Web Limited is noted to be significantly threatened, since the company’s financial performance has weakened considerably over time. In addition, the company is not compliant with its responsibilities to the Ghana Stock Exchange with regard to holding Annual General Meetings.

Transaction Solutions Ghana Limited

The GSE has accepted a two-option proposal from the Executive Chairman of Transaction Solutions Ghana Limited. According to the proposal, TRANSOL is to either merge with Clydestone Ghana Limited (a sister company) or voluntarily delist from the stock market. The company has been therefore instructed to ensure the process is completed by March 30, 2018.

Aluworks, CPC and Clydestone

Aluworks Limited, Cocoa Processing Company Limited and Clydestone Ghana Limited have been put on a watch list until 30th May 2018. The decision is due to their poor financial situations. According to the GSE, the three companies would be further assessed for any improvement at the end of the watch list period. Based on the assessment, a decision would be taken on their continued listing status.

Pioneer Kitchenware Limited

Pioneer Kitchenware Limited wishes to voluntarily delist from the Ghana Stock Exchange. To this effect, it has officially written to the GSE of its intention. The company has therefore been given up to the end of May 2018 to complete the voluntary delisting process.

 

Credit: GSE