Business News of Wednesday, 19 December 2018
The managers of the Ghana Stock Exchange are to remove Pioneer Kitchenware from the database of listed companies on the stock market by the end of 2018.
This is because the company has failed to make any progress with reconciling its operational performance with the operators of the bourse despite several notices to do so.
The Managing Director of the Ghana Stock Exchange, Kofi Yamoah disclosed this to Citi Business News in an interview in Accra.
“For Pioneer Kitchenware, we have not heard any further development and so as it stands now, at the end of the year, we will take it from the list,” he stated.
Meanwhile two other companies have been granted waivers to continue trading on the market following some interventions announced in turning around the fortunes of their respective operations.
These are the Cocoa Processing Company and Aluworks.
Explaining what prompted the decision on these two companies, Mr. Yamoah said:
“In the case of CPC, the company has issued notice through us to the general public of an upcoming Annual General Meeting at which they will lay all the account arrears before them. We are also informed of COCOBOD assisting in supplying them beans and therefore hopefully, we believe that in the course of the months ahead, their fortunes will turn for the better,” he observed.
The GSE boss further indicated that Aluworks has sought an investor who is expected to help change the fortunes of the company.
“For Aluworks we also issued an announcement indicating that they have reached an agreement with a significant shareholder to put in additional working capital and hopefully that will help them turn their fortunes around.
“We know that in recent times the major supplier of aluminium goes to many of these companies; for example Valco is supplying aluminium to Aluworks which should see them produce more.”
The managers of the bourse have cautioned the three companies and others several times over their failure to submit updated information on their operations.
Analysts are of the view that the delisting of non performing companies should restore confidence in the market and attract more investors even outside the sub-region.