Largest Cocoa Buyer in Ghana to Close $68 Million Rights Deal

Largest Cocoa Buyer in Ghana to Close $68 Million Rights Deal

From Bloomberg

Produce Buying Co., Ghana’s largest buyer of cocoa beans from farmers, postponed a sale of shares until the first quarter of 2014 as it waits for approval from the government, Managing Director Kojo Atta-Krah said.

“The rights issue is at cabinet level, we are expecting approval to come in November,” he said in an interview in Accra on Oct. 18. The offer will be for at least 150 million cedis ($68 million), Atta-Krah said. The West African nation, including the state pension fund, owns about 75 percent of the company.

The remaining 25 percent of investors approved the share sale, initially pegged at 200 million cedis, of new shares in March, pushing the stock to the highest in more than a year. The offer, scheduled to have started in July, would have been the first by a member of the Accra-based bourse this year. The shares fell 50 percent since the peak after the company reported a loss.

PBC lost 2.2 million cedis in the nine months through June 30, compared with profit of 12.4 million cedis a year earlier, the company said on July 30.

Read more at bloomberg.com