The Ghana Stock Exchange (GSE) has with immediate effect, lifted the suspension of listing imposed on PBC Limited.
The GSE in a statement, attributed the suspension to the failure of the PBC Company Limited to publish its financial results since the end of its financial year, September 2018. But, GSE indicated that the company has now done the right thing.
“PBC has since rectified all the anomalies that led to its suspension.
“Accordingly, the Exchange has lifted the suspension of listing with immediate effect.”GSE Statement
Part VI of the GSE Listing Rules outlines that a listed company shall comply with the continuing listing obligations and disclosure policy outlined in the Rules.
The prescribed sanctions for failing to abide by that regulation are specified in Rules 13(4)C and 13(4)E of the Listing Rules.
GSE Suspends PBC
On August 13, 2019, the Ghana Stock Exchange (GSE), per its Press Release No. 303/2019, announced the suspension of listing status of licensed cocoa buyer, PBC, from the bourse from Thursday, August 15, 2019.
It followed the company’s inability to comply with two requirements of the GSE, it said in a statement issued Tuesday, August 13, 2019.
GSE mentioned the breached regulations as failure to publish financial results for the 2018 financial year and failure to redeem a debt instrument issued earlier.
“The non-publication is in breach of the continuing listing obligations under the GSE Listing Rules”.GSE Statement
The financial year of PBC, which was previously called Produce Buying Company, ended in September 2018.
The GSE’s notice to suspend the company added that “PBC has failed to redeem the Tranche P4 of its note program, which matured on December 6, 2018.”
Part VI of the GSE Listing Rules outlines that a listed company shall comply with the continuing listing obligations and disclosure policy outlined in the Rules. As such, the prescribed sanctions for failing to abide by that regulations were handed to PBC company.
The rules empower the GSE to “suspend listing or compulsorily de-list securities where the company has failed to comply, or is unable, or unwilling to comply for any reason whatsoever with the Exchange’s requirements on continuing listing obligations and also where the company has failed to comply with its Listing Agreement, or other agreements with the Exchange, or has failed to comply with the Exchange’s Rules and disclosure policy as set out in Parts VI and VII of the Rules.”
Protest By PBC Staff
The planned action of the GSE came in the wake of series of protests by staff of PBC against their Managing Director, Mr Kofi Owusu-Boateng, and the Board Chairman, Mr Charles B. Ntim, over allegations of mismanagement.
On Tuesday, August 6, 2019, the staff picketed at the company’s head office in Accra to register their displeasure.
Beyond accusing the board and management of failing the staff and the company, they asked the appointing authority to revoke their appointments and bring in capable hands to revive the company.
PBC, which is the biggest cocoa buyer, is majorly owned by the Social Security and National Insurance Trust (SSNIT) and the Government of Ghana, through the Ministry of Finance.
The two lead shareholders own almost 75 per cent of the company, which recently diversified from its core business of cocoa buying into real estate and shea nut processing through the establishment of the Golden Bean Hotel in Kumasi and the Shea Factory in Buipe.