BRVM suspends trading of Solibra shares over regulatory non-compliance
TLDR
- Solibra, a key player in the Ivorian economy, has had its shares suspended from trading by the BRVM for alleged non-compliance with regulatory provisions.
- The suspension, effective for six months, follows Solibra's restructuring program in 2022, which included terminating its contract with Coca-Cola and selling mineral water brands.
- Concerns over Solibra's regulatory float and capital are believed to have prompted the BRVM's action.
Solibra, a subsidiary of the Castel Group and a key player in the Ivorian FMCG sector for over sixty years, has seen its shares suspended from trading by the BRVM.
The suspension, effective immediately for six months, comes as a result of the company's alleged non-compliance with certain regulatory provisions, as stated in the BRVM's press release. Local reports suggest that concerns over Solibra's regulatory float and capital may have prompted this action.
Active in the production and distribution of beer, as well as other alcoholic and non-alcoholic beverages, Solibra initiated a restructuring program in 2022. This program commenced with the termination of its contract with Coca-Cola and subsequently led to the sale of the AWA and Crystalline mineral water brands to the Carré d'Or Group.
Key Takeaways
Strict governance and oversight by the regional regulator, AMF UMOA (Autorité des Marchés Financiers de l'Union Monétaire Ouest Africaine), play a vital role in ensuring investor protections on the BRVM. Just three months ago, the regulator suspended trading of a listed firm, EVIOSYS Packaging SIEM (formerly Crown SIEM), due to non-compliance with listing rules, highlighting its commitment to transparency and compliance. Meanwhile, Solibra has recently seen a significant decline in financial performance. After achieving a net profit of 22.02 billion FCFA in 2021, profits sharply decreased to only 1.22 billion FCFA by the end of 2022, marking a substantial depreciation of 95%. However, there are indications of a reversal in this trend, as the company has demonstrated a notable improvement in results, with profits soaring by 251.1% to reach 11.07 billion FCFA by the end of June 2023.
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