The Ghana Stock Exchange, GES, has lifted the suspension of shares trading on Agriculture Development Bank, ADB.
The GES had on Wednesday, March 7, 2018, suspended ADB from trading after news of a purported takeover by a local Ghanaian bank UniBank was reported by the media.
But According to thebftonline.com, GES has lifted the suspension placed on ABD, which means the shares of the bank can now be traded.
Executive Director of UniBank Clifford Mettle in a radio interview on Wednesday confirmed the bank’s acquisition of 51 percent shares in ADB which he believed was a strategic alignment.
Reports revealed that a consortium of financial institutions that control majority shares in ADB has pledged its shares, proceeds, entitlement and voting rights to uniBank.
The consortium, led by Belstar Capital – a turnkey project finance and implementation institution, also includes Starmount Development Company Limited, EDC Investments Limited, and SIC-FSL.
These institutions took up a substantial stake (51%) in ADB’s Initial Public Offering (IPO) in 2016 when the bank announced its plans to go public. With these 51 percent shares under the control of uniBank, including having majority voting rights, the bank (uniBank) can now determine the strategic direction of ADB.
The Governor of the Central Bank, Dr. Ernest Addison, in reaction to the media report stated that the regulator did not approve the transaction and thus the deal is null and void.
ADB has also dismissed the purported takeover by UniBank.
The Board Chairman of ADB in a statement said: “The Bank has received letters from Belstar Capital Limited, EDC Limited and Starmount Investment Limited having pledged their various shares in the Agricultural Development Bank Limited to Unibank. It is the opinion of ADB that a pledge does not have the effect of the transfer of ownership.
www.primenewsghana.com/Â Ghana News