Ghana Stock Exchange disappointed with government’s sale of AngloGold shares
The Governing Council of the Ghana Stock Exchange (GSE) has registered its displeasure at the government for bypassing the local bourse in the sale of the 1.28 per cent of its stake in AngloGold Ashanti (AGA), the Daily Graphic reports.
According to the report, the Council said the country could be better served if the sale of AngloGold Ashanti shares was rather floated on the GSE instead of the Johannesburg Stock Exchange (JSE).
“The GSE, registers its disappointment at the government’s decision to trade on AGA shares at the JSE when the deal could have been executed o the GSE, depriving the country of the benefits accruing from this transaction”, Graphic said citing Mr Frank Brako Adu, Chairman of the GSE Governing Council.
Ghana sold 1.28% of the country’s stake in AngloGold Ashanti for $43.97 a share and raised $215 million, according to a Bloomberg News report.
The report citing the Johannesburg-based unit of manager, Macquarie Group Ltd, said the sale of 4.88 million shares leaves Ghana with 1.72% in AngloGold that it agreed not to sell for 180 days.
The opposition New Patriotic Party (NPP) commended the National Democratic Congress (NDC) government for selling the stake.
The party’s spokesman on Finance and Member of Parliament, Dr. Osei Akoto told ghanabusinessnews.com that the decision is a right one because the price of gold has appreciated on the international market.
The Ghana government was the majority shareholder in Ashanti Goldfields Company, until it announced plans to sell 20-25% of its interest in the mine.
Subsequently, the company was listed on the London and Ghana Stock Exchanges.
In 1996 the company was listed on the New York Stock Exchange to raise new capital and it became the first African company to appear on Wall Street.
In 2004, it merged with AngloGold to create the world’s second-largest gold producer, AngloGold Ashanti Company.
AngloGold Ashanti owns two mines in Ghana at Obuasi and Iduapriem.
By Ekow Quandzie
These are some of the reasons why foreign firms operate the way they do in Ghana without listing and being free for all if Ghana has it own gender. We have a vibriant stock exchange so why government will bypass and sells it shares with Ghana Stock Exchange is Shame!!