Business News of Thursday, 8 March 2018
The Ghana Stock Exchange (GSE), has lifted a suspension it placed on the trading of shares of the Agriculture Development Bank (adb).
In press statement issued by the GSE today [Thursday] March 8, 2018, and copied to Citi Business News, advised the investing public to go ahead and work with the bank.
“With reference to Press Releases numbered 068/2018 and 073/2018, the Exchange announces the lifting of the suspension of trading in the shares of adb with immediate effect. The investing public and all stakeholders are to note the information released in the Press Release numbered 073/2018 and be advised accordingly.” The GSE on Wednesday suspended adb, following a purported takeover of the bank by uniBank.
A statement from the GSE explained that the action was taken pursuant to section 7 of the GSE Automated Trading rules.
We’ve not taken over adb—uniBank
Meanwhile, uniBank later on Wednesday denied reports that it has taken over adb.
Earlier reports stated that uniBank had taken over adb after four shareholders of adb comprising Belstar Capital, Starmount Development company, EDC, as well as SIC Financial Services Limited, pledged their shares, proceeds, entitlement and voting rights to uniBank, giving it control over adb.
But in a twist of events, a statement issued by uniBank, and signed by Dr. Kwabena Duffuor Jr, said “we are NOT taking over ADB”.
adb debunks takeover by uniBank
adb also denied media reports that uniBank has takeover the bank.
A press release signed by the chairman of the bank and copied to Citi Business News, debunked the publication, adding that a pledge by the shareholders do not give uniBank the power to take over the bank.
“It is the opinion of adb that, a pledge does not have the effect of the transfer of ownership. Thus if the shareholders mentioned herein have pledged their shares together with any benefits or privileges attached thereto that will not have the effect of making Unibank a shareholder of the Agricultural Development Bank Limited or constitute a takeover of the Bank,”.
adb, uniBank saga: SIC-FSL did not pledge shares
Meanwhile, Citi Business News gathered that SIC Financial Services Limited (SIC-FSL) has not pledged its shares in adb to uniBank in fulfillment of an earlier financial commitment.
This is contrary to earlier reports that suggested that the company, SIC FSL, is part of a consortium of shareholders of adb who have pledged their shares to indigenous bank, uniBank.
Per the move, uniBank will therefore assume a controlling interest in adb as the total shares of the consortium would have amounted to some 51%.
However, information available to Citi Business News indicate that the financial services company could not have been part of the deal after all.