Mechanical Lloyd delists from stock market on April 16

Mechanical Lloyd Plc will delist from the Ghana Stock Exchange (GSE) today, April 16, 2021 following the completion of the tender offer and settlement of all shareholders who tendered in their shares.

The Company in a release said it will delist from stock market after trading on Friday, 16 April 2021. The delisting has been approved by the GSE.

“The offer was for 16,900,487 ordinary shares at GHS0.10 per share. At the close of the Offer, a total of 165 shareholders tendered in 2,800,065 shares. Settlement (shares and cash) of the tendered shares has occurred,” the company stated.

The de-listing is in line with Mechanical Lloyd’s strategy to review its business model and structures to re-position the Company going forward.

The company has indicated that the de-listing will not impact job security, day-to-day operations and relationships with stakeholders.

Some market analysts have point out that continuous de-listing of companies affects the sentiments of investor, giving that there are expectations for more companies to de-list on the market.

Today’s delisting will place the total number of companies delisted from the bourse at seven over the past three years – some voluntary, some enforced. This will reduce the number of companies listed on the bourse to 30.

Currently, Mechanical Lloyd has a total of 50.10 million shares issued on the bourse, with a total market capitalisation of GH¢4.51 million.