Skip to main content

Two companies delist from GSE by March

By Kofi AHOVI
Two companies, CFAO and Accra Brewery Limited (ABL), have announced their intentions to de-list from the Ghana Stock Exchange (GSE) by the end of March this year.

The last time a company de-listed on the bourse was about four years ago when British American Tobacco de-listed from the bourse.

CFAO is de-listing as a result of the policy of the CFAO group to de-list its subsidiaries from all stock exchanges, including Ghana, while ABL says it would enable it to implement a much-needed business recovery programme.

The shareholders of both CFAO and ABL at the general meeting of December 2009 and September 2010 respectively voted for the companies to be de-listed from the GSE.

In line with the GSE de-listing rules, CFAO has made exit arrangement for all existing shareholders who wish to sell. The exit price is GH¢0.04.

The purchase price as per the GSE rule should be the higher of the price on the day of the AGM, which was GH¢0.04 or the 12-week average market price prior to the general meeting which was also GH¢0.04.

On the other hand, the management of SABMiller Africa, the parent company of Overseas Breweries Limited (OBL), which is the majority shareholder of ABL, intends to make an offer to the minority shareholders of ABL for and on behalf of OBL, for all of their outstanding ordinary shares in ABL to provide an exit strategy for their shareholding in ABL, subject to obtaining all regulatory approvals.

For a company seeking to de-list, the GSE rules require an exit arrangement to be made for all shareholders who do not wish to remain holders after the company has de-listed. Subsequently an offer document for the purchase for cash of all the outstanding shares was submitted to and approved by the Securities and Exchange Commission.

An exit price of GH¢0.13 is being offered to all ABL shareholders by its parent company. The price for the exit arrangement as per the GSE rule should be the higher of the day of the AGM, which was GH¢0.12 or the 12-week average market price prior to the general meeting, which was GH¢0.09.

Accra Brewery Limited, a subsidiary of SABMiller plc and originally known as Overseas Breweries Limited, was registered in Switzerland in 1931, establishing a brewing industry in the then Gold Coast.

Currently, the company manufactures and distributes beer, sparkling soft drinks and non-alcoholic malt beverages.

Its brands are household names in the country; Club Premium Lager, Club Gold Export Lager, Castle Milk Stout, Stone Strong Lager, Chairman Malt Liquor, Club Shandy, Redd's Fruit Fusion, Peroni Nastro Azzurro, Chibuku Shake Shake, Castle Milk Malt, Club Cola, Club Muscatella, Club Orange, Club Soda and Club Quinine Tonic.

The management of SABMiller plc is currently the majority shareholder through its holding in OBL which in turn holds a 69.2% stake in ABL, which has 3,711 shareholders in total.

ABL's mission is to own and nurture local and international brands that are the first choice of consumers and customers in Ghana.

Experts believe that ABL’s delisting from the stock market is purely due to the company’s inability to keep up with the growing competition in the beverage industry, as the company is struggling with poor market condition.

This has accelerated losses over the past few year, for the financial year ended March 31, 2010, the company recorded a loss of GH¢5,671,000 which was an increase of over 150% from a loss of GH¢2,240,000 for the same period in 2009.

The company also has liquidity problems, as the current liability exceed current assets by GH¢17,255,000 for the just ended financial year. Interest paid over the period as a result of long term loans contracted has rocketed from GH¢963,000 in 2009 to GH¢7,216,000 in 2010.

Comments

Popular posts from this blog

Nestlé Ghana Limited Wins Overall Best Industrial Company Of The Year at 13th AGI Industry & Quality Awards

  Nestlé Ghana Limited has been honored with four prestigious awards at the 13th Association of Ghana Industry and Quality Awards ceremony. The event, held in an esteemed setting, gathered prominent figures from Ghana’s industrial sector. Amidst the anticipation, Nestlé Ghana emerged as one of the evening’s notable winners, securing accolades in several key categories. This recognition underscores Nestlé Ghana’s relentless pursuit of excellence and innovation, marking a significant milestone that highlights the company’s substantial contributions to the manufacturing industry in Ghana. Nestlé Ghana's exceptional performance was acknowledged with the following awards: Overall Best National Quality Award, Diamond Category (Food) Overall Best Practices in Sustainable Manufacturing Best Company (Food Sector) Overall Industrial Company of the Year, affirming its status as a leader not only within the food sector but also across Ghana's entire industrial landscape. This success is a ...

Anglogold Ashanti Obuasi Mine tops 2024 Sustainability & Social Investment Awards

 AngloGold Ashanti Obuasi Mine has confirmed its status as sustainability champions by sweeping nine awards, the most won by a company at the 2024 Sustainability & Social Investment Awards (SSI) held at Movenpick Ambassador Hotel in Accra. The feat comes on the heels of a dominant performance in last year's event where AngloGold Ashanti Obuasi Mine swept seven awards. The SSI Awards organised by Ianmatsun Global Services recognizes the most outstanding sustainability, Corporate Social Responsibility (CSR), Environmental, social, and governance (ESG) initiatives in the country and beyond as well as the best teams and individuals who brought them to life. This year's event, which was the 8th edition, was under the theme "Climate Action Now: Accelerating Decarbonization and Building Resilience". The awards won by AngloGold Ashanti on the night include SSI Company of the Year, Best Company in Women Empowerment (project), SSI Company of the Year ( Environment), Best Co...

Zoomlion Advocates Community & Gender inclusive waste management for Climate Action at COP 29

 Africa's waste management giant, Zoomlion Ghana Limited has advocated for an integrated approach to waste management that considers the interest of community members, women and vulnerable groups. James Deku, a Communications Officer of Zoomlion Ghana Limited made this call at the 29th session of the Conference Of Parties (COP 29) of the United Nations Framework Convention for Climate Change (UNFCCC) at Azerbaijan, Baku whiles speaking on the topic "Community-Driven and Gender Inclusive approaches to waste management for Climate Action ". He said the waste sector is a major contributor of methane emissions which is a potent greenhouse gas causing climate change hence the need to manage waste in a manner that considers the interest of all stakeholders. Zoomlion's waste management model is designed and operated in a manner that considers the interest of all stakeholders. Through a Public Private Partnership (PPP) model, local authorities engage community members in clea...