December 27, 2017 / 3:49 PM / 5 months ago

Ghana Stock Exchange says three firms on delisting watch list

ACCRA, Dec 27 (Reuters) - The Ghana Stock Exchange (GSE) has put on its watch list three distressed companies including Cocoa Processing Company (CPC) for possible delisting if their financials do not improve by the end of May, the exchange said on Wednesday.

State-run CPC, known for its flagship ‘Golden Tree’ products, currently operates at less than half of its annual capacity of 64,500 tonnes.

Ghana, the world’s second largest cocoa producer after Ivory Coast, is aiming to process at least 50 percent of the beans.

CPC said in August it needed at least $300 million to revive its operations. A senior official declined to comment on the GSE’s threat to delist the company.

The GSE in August suspended trading in the company’s shares for two weeks after it failed to submit financial reports or to conduct annual general meeting despite several promptings.

Also on the watch list is Aluworks Ghana Limited, a West Africa-wide aluminium raw material supplier, currently operating at around a third of its 30,000 tonnes capacity due to lack of funds.

Its Managing Director Kwasi Okoh said the company had instituted measures to balance its finances before the May deadline. “The outlook is clear and by May, all of this would have been resolved,” he told Reuters.

The Exchange is also watching Information Technology service provider Clydestone Ghana for a possible delisting because of its weak finances.

Clydestone also has operations in Nigeria and Kenya, where it provides electronic services such as payment platforms and third party processing to financial institutions.

Tina Satuh, corporate communications manager, declined to comment on the GSE statement, saying management had yet to discuss the issue. (Reporting by Kwasi Kpodo; Editing by Andrew Bolton)

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