Cabinet approves listing of Graphic Communications Group on Ghana Stock Exchange

In a significant move aimed at revitalizing one of Ghana’s key media outlets, the Cabinet has approved the listing of Graphic Communications Group Limited (GCGL) on the Ghana Stock Exchange (GSE).

This decision, primarily driven by the need to recapitalize the company, comes amidst reports that the state-owned entity has been struggling to generate sufficient revenue to meet its financial commitments, including the payment of salaries, pension contributions, and unresolved end-of-service benefits for retired staff.

The approval to list GCGL on the GSE is seen as a strategic step to modernize the operations of the media firm, which publishes well-known newspapers such as the Daily Graphic, Weekend Mirror, Junior Graphic, and Graphic Sports.

The firm has been grappling with financial difficulties, leading to concerns about its long-term viability.

During a recent working visit to GCGL, the Minister for Information, Fatimatu Abubakar, elaborated on the government’s decision.

She emphasized that listing the company on the stock exchange is intended to infuse it with fresh capital, enabling it to compete more effectively in the modern media landscape.

“Looking at the pros and cons, there was a Cabinet decision that it [Graphic Communications Group Limited] should be listed. In furtherance of that decision, the [Information] Ministry has been engaging the boards of the two agencies or companies and also engaging some of our key stakeholders to see how best we can execute the listing,” Abubakar stated.

Addressing rumors circulating about the government’s intentions, Abubakar clarified that there is no plan to sell the company to private individuals.

“There have been some speculations in the system saying that the president wants to sell the company to this private individual or the other but that is far from the truth. In fact, as we speak now, not a single investor has been approached or expressed interest. We are still going through the phase of engaging the services of a transactional advisor, opening it, and listing it, so we are saying it so that if you have an interest, you can even start preparing to see how best you can apply to acquire shares in the company.”

The decision to list GCGL on the GSE is part of broader government efforts to ensure the sustainability and profitability of state-owned enterprises.

By opening up to public investment, GCGL aims to attract a diverse pool of shareholders, thereby increasing its capital base and enabling it to invest in new technologies and innovative media solutions.

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A statement signed by the then Minister of Information, Kojo Oppong Nkrumah, addressed to the Board Chair of GCGL, underscored the importance of this move.

It noted that after a meeting held in Parliament on December 14, 2023, the Board of GCGL, in agreement with the Ministry of Information, concluded that “the option to list on the Ghana Stock Exchange is the best route for recapitalisation of GCGL.”

The background of GCGL’s financial troubles paints a picture of a venerable institution facing modern challenges.

Founded in 1950, Graphic Communications has been a cornerstone of Ghanaian media, providing comprehensive news coverage and contributing to the public discourse.

However, the advent of digital media and changing consumer habits have placed traditional print media under significant strain.

Advertising revenues have dwindled, and the cost of print production has increased, exacerbating the financial pressures on GCGL.

Efforts to restructure and modernize the company have been ongoing, but the financial requirements have outpaced the firm’s capacity to generate sufficient internal funds.

The listing on the GSE is seen as a pivotal step to attract the necessary capital to implement these modernization plans effectively.

The government’s move to list GCGL is not just about financial survival; it’s also about preserving a vital institution of Ghanaian journalism.

By opening up to public investment, the government hopes to democratize the ownership of GCGL, allowing ordinary Ghanaians to own a stake in the company.

This approach is expected to foster a greater sense of public ownership and support for the media house.

As GCGL prepares for its listing, the focus will be on ensuring transparency and accountability in the process.

The engagement of a transactional advisor will be crucial in navigating the complexities of the listing and ensuring that the process adheres to best practices and regulatory requirements.

In conclusion, the Cabinet’s decision to list Graphic Communications Group Limited on the Ghana Stock Exchange marks a significant milestone in the company’s history.

It is a bold step aimed at securing the future of a key player in Ghana’s media landscape, ensuring it remains relevant and financially robust in the years to come.

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