Citi Business News has gathered that shareholders of Cocoa Processing Company Limited are set to meet to determine their next line of action after the Ghana Stock Exchange suspended the company from the bourse.
The company which has three major government institutions as its main shareholders was suspended from the stock market for failing to submit its financial reports, as well as conduct Annual General Meetings.
Currently, COCOBOD owns about 57 percent of the shares of CPC, while the government through the Ministry of Finance owns about 26 percent. The Social Security and National Insurance Trust (SSNIT) controls about 11 percent. The remaining shares which are less than 10 percent is owned by individuals.
The Deputy Managing Director of the Ghana Stock Exchange Mr. Ekow Afedzie explained to Citi Business News that the company has failed to meet its continuing listing obligations in spite of several promptings. According to him, CPC failed to submit financial reports as well as conduct Annual General Meetings.
“It is normal. It is a normal procedure that we take to keep the stock exchange efficient. So it is a normal process we are undertaking,” he said.
In May this year, the Staff Chairman of the Professional and Management Union at the CPC, Mr. Francis Aloko told Citi Business News that the workers were in support of delisting the company from the bourse.
However government officials told Citi Business News delisting the company from the stock market will defeat the government’s agenda of encouraging the private sector participate in the operations of the company.
CPC which produces Ghana’s flagship chocolate, the Golden Tree brand has been performing poorly on the bourse for some time now. The company is said to owe COCOBOD about 90 million dollars for cocoa beans supplied, while it owes some syndicated banks about 20 million dollars.
CPC’s performance on the bourse
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.
CPC workers call for delisting
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 them, 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.
By: Lawrence Segbefia/citibusinessnews.com/Ghana