GHANA – British multinational manufacturer of personal healthcare products and consumer goods PZ Cussons has announced its plans to delist from the Ghana Stock Exchange.
The manufacturer becomes the sixth company to delist from Ghana’s stock exchange within a period of two years.
PZ is one of the oldest and most highly capitalized companies on the country’s bourse and being a multinational of high pedigree has always been regarded as a blue chip.
Its impending delisting is therefore seen by equity investors and capital market regulators and operators alike as a major blow.
PZ’s exit from the equity market is happening at a time when the GSE has been pushing for companies, especially multinationals to list on the bourse.
A notice issued by PZ Cussons Ghana Limited to the GSE in October this year, indicated that the de-listing is a special business agenda for its 61st Annual General Meeting to be held later in November.
The notice further revealed that one of the AGM’s agenda would be to an approval of the de-listing of the company from the Ghana Stock Exchange.
Shareholder approval would give the Directors authorization to take all steps necessary to ensure a cost effective and well-managed de-listing of the Company.
Directors will also be tasked with the responsibility of ensuring that the Company realizes the full benefits associated with a de-listing from the GSE.
In view of the latest development, some market analysts are of the opinion that PZ exit does not send a good signal, given that there has been push for more multinationals to list on the bourse.
Information available from reliable sources inside PZ itself indicates that the reason for the de-listing has to do with efforts to revamp the company.
PZ Cussons has 168 million issued shares with a market capitalization of GHc 65.52 million and its shares this year have traded between a high of GHc 0.41 and low of GHc 0.39.
Several companies have been delisted since mid-2017 including UT Bank in the wake of the revocation of its operating license by the Bank of Ghana, African Champion Industries Transaction Solutions Ghana and Golden Web, as well as Pioneer Kitchenware.
The last entirely voluntary delisting was that of Accra Brewery about a decade ago and the decision taken to facilitate a major investment programme for expansion being undertaken by its parent and majority shareholder, SAB Miller.