CAMEROON – Gabon Development Bank (BGD) has announced its decision to withdraw from the Central African Stock Exchange (BVMC) by selling its 32.15% stake.
The move is a strong assurance to several investors who were worried about the fact that BGD which is the BVMAC’s leading shareholder is in liquidation.
Gabon Development Bank which has been ailing for years is now under liquidation, a situation many experts thought would affect the credibility of the BVMAC which has embarked on a dynamization process.
The withdrawal is an opportunity for Cameroon to extend its influence over the stock exchange which is based in its economic capital Douala.
Despite the merger of the Douala Stock Exchange and the BVMAC, the new stock exchange is still mainly controlled by Gabonese companies which are BGD (leading shareholder), BGFI Capital and BGFI Bourse (which are both subsidiaries of BGFI).
Cameroonian groups Société Générale Cameroon, National Investment Company of Cameroon, Autonomous Amortization Fund, National Social Security Fund, Hydrocarbon Prices Stabilization Fund and Crédit Foncier only controls only 18.1% of the stock exchange’s capital.
The withdrawal gives Cameroon another opportunity to strengthen its position in the BVMAC.
Born from the will of the six Conference of Economic and Monetary Community of Central Africa (CEMAC) States, the Central African Stock Exchange (BVMAC) became a common and unique capital market for the six countries (Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon) after its merger with Douala Stock Exchange (DSX).
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