Ghana Stock Exchange Delists Two Companies
The Ghana Stock Exchange (GSE) has delisted two companies from the bourse for breaching aspects of the regulations governing the operations of listed companies.
The delisting of the two, Golden Web Limited and Transaction Solutions Ghana Limited takes effect from April 3, 2018, the exchange said in a press statement copied to Graphic Online.
It explained that the decision to delist the two was based on Rule 13 of the GSE Listing Rules.
“Under Rule 13(1) of GSE’s Listing Rules, “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”.
“Among the reasons for which GSE may delist a company is where the financial situation of the company is significantly threatened, as provided under Rule 13(4)(g) of GSE’s Listing Rules; or where the company consistently fails to comply with GSE’s Rules and directives, as per Rule 13(4)(h) of GSE’s Listing Rules.
The action is a new wave of sternness by the Ghana Stock Exchange against listed companies for performing below expectation.
In August last year, it delisted erstwhile UT Bank after it was liquidated by the Bank of Ghana.
Few days after that action, the bourse suspended trading in the shares of five companies for failing to comply with listing requirements.
The five, African Champion Industry Limited (ACI), Clydestone (Ghana) Limited (CLYD), Golden Web Limited (GWEB), Pioneer Kitchenware Limited (PKL) and Transaction Solutions Limited (TRANSOL), had “failed to meet their continuing listing obligations in spite of several promptings to do so,” a release from GSE at the time said.
In December, the Ghana Stock Exchange said it was working to delist Aluworks, Cocoa Processing Company and Clydestone Ghana for also failing to comply with continuous listing requirements.
Then in February this year, the Managing Director of the exchange, Mr Kofi S. Yamoah, said some companies had been placed under a watchlist for possible actions.
Although belated, the new line of action from the GSE is expected to help standardise the activities of listed companies on the bourse, much to the benefit of investors.
Source: Graphic Online