PBC Ltd., the biggest buyer of cocoa from farmers in Ghana, fell the most in more than six months on concern that a proposed rights offer won’t be approved by the main shareholders.
The stock dropped 9.1 percent, the most since Sept. 25, to 20 pesewas by the close in the capital, Accra, adding to an 8.3 percent retreat yesterday.
PBC doubled the planned rights offer to 200 million cedis ($103 million) as it tries to reduce finance costs, the company said this month. While smaller investors gave their consent at the company’s annual meeting on March 22, the government still needs to approve the plan, Maxwell Kojo Atta-Krah, managing director of PBC, said in an interview on March 26.
“Investors are uncertain whether the rights issue will happen,” Merban Stockbrokers Ltd. said by phone. “Investors were first told 100 million cedis before the annual general meeting and it became 200 million cedis,” and the increase wasn’t approved by the government and the state pension fund, the two main shareholders, Gyamfi said.
Ghana’s state pension fund owns 38.1 percent of PBC, with the government holding 36.7 percent, according to data compiled by Bloomberg. Cecilia Akwetey, spokeswoman for Ghana’s Finance Ministry and Eva Amegashie of the pension fund, declined to comment when calls were made to their mobile phones today.