GSE suspends Cocoa Processing Company from trading
According to the Ghana Stock Exchange the CPC has failed to comply with rules and regulations stated.
This is because the CPC has failed to comply with rules and regulations stated by the GSE.
The CPC is not the only entity that has been suspended in recent times from the bourse.
Earlier in the week, 5 companies were suspended after which two were re-admitted onto the bourse.
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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.
Performance of CPC on the bourse
CPC which produces Ghana’s flagship chocolate, the Golden Tree brands has been performing poorly on the bourse for some time now.
The poor performance has been 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.
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Currently, COCOBOD owns about 57 percent of the shares, the Ministry of Finance owns about 26 percent, and SSNIT owns about 11 percent. The remaining shares which is less than 10 percent is owned by individuals.
Before this development, workers of CPC appealed to the government to delist the company from the bourse due to its poor performance over the years.
They argue that it will be better for government to delist and control the Company since it is the majority shareholder.
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