MALAWI – Conglomerate Press Corporation plc (PCL), a public company, has delisted from the London Stock Exchange (LSE) as a global depository receipt following a review of continued benefits of listing on the bourse.
PCL was the only firm in the country which was dual-listed on both Malawi Stock Exchange (MSE) and LSE as a global depository receipt which is a general name for a depository receipt where a certificate issued by a depository bank, which purchases shares of foreign companies, creates a security on a local exchange backed by those shares.
PCL board chairperson Patrick Khembo announced the development during the Malawi Stock Exchange (MSE)-listed firm’s annual general meeting (AGM). He said the firm delisted on LSE on July 10, 2020.
“The board took the decision following a careful and thorough assessment of the benefits of our continued listing on the London Stock Exchange,” said Khembo.
“The factors that were considered included the extremely low trading volumes for the past years, huge regulatory, compliance and administrative costs the company incurs annually and the likely liquidity benefits that a cancellation could trigger on the local market.”
He said the board decided that the cancellation will not adversely affect its shareholders since the firm’s common shares will continue to be listed and tradeable on MSE.
The meeting also re-elected Stewart Malata as a director on the board who retired by rotation but being eligible offered himself for re-election.
Press Corporation plc is one of the largest holding company in Malawi and has interests in different sectors of the Malawi economy including financial services, telecommunications, food and beverages, energy and consumer goods.
The highly diversified company has stakes in thirteen companies comprising of eight subsidiaries, four joint ventures and one associate.
Press Corporation Limited, also Press Corporation Plc, is a business conglomerate, partly owned by Press Trust, a sovereign trust fund, of the government of Malawi, that is outside of the direct control of the Malawian government.
Press Corporation Limited is the largest conglomerate in Malawi, and has ownership in 15 companies in Malawi, including 8 subsidiaries, 4 joint ventures and one associate company.