uniBank ‘Takeover’ uniBank denies taking over ADB

In a statement issued on Wednesday (March 7, 2018),  and signed by the bank’s Chief Executive Officer Dr Kwabena Duffuor II. he reiterated that they only reached an agreement with Belstar consortium to sell their entire holding in ADB.

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uniBank has indicated that it is not taking over the  Agricultural Development Bank (ADB) as media reports have suggested.

In a statement issued on Wednesday (March 7, 2018),  and signed by the bank’s Chief Executive Officer Dr Kwabena Duffuor II. he reiterated that they only reached an agreement with Belstar consortium to sell their entire holding in ADB.

“In November 2017, we reached an agreement with the Belstar led consortium to sell their entire holding in ADB and, to subsequently invest the proceeds into uniBank. This led to an agreement between both parties with a set timeline for closure of the transaction which would culminate in uniBank raising a minimum of GHS 600 million in capital and with Belstar acquiring a stake in uniBank.”

READ ALSO: uniBank’s takeover of ADB is illegal - Bank of Ghana

He further explained that “Due to the delayed timeline of the equity investment, uniBank has taken the additional precaution of committing Belstar Capital to their obligation under the share subscription agreement by pledging all shares held by the Belstar led consortium in ADB to ensure that the transaction will be consummated and the proceeds from the sale of shares paid directly to uniBank.”

“It is against this background that Belstar Capital Ltd and other members of the consortium of shareholders have pledged their shares in ADB to uniBank to demonstrate their commitment to the agreement and the strategic direction of uniBank.”

READ ALSO: Lack of funds caused us to abandon Ghana@60 projects – C’ttee

“We wish to put on record that the pledge by members of the Belstar led consortium does not constitute a sale of shares to uniBank. It is only a demonstration of commitment by our capital raising partners and must be considered as such.”

uniBank which is wholly Ghanaian owned also noted it is “committed to the stability and development of our banking industry and will continue to play its part in propagating the necessary growth of the industry for the benefit of the good people of Ghana”

Below are details of the statement by uniBank

On the back of the newspaper publication this morning concerning the purported takeover of ADB by uniBank, we wish to state emphatically that we are NOT taking over ADB. We   wish to provide clarification for the benefit of the investing public and our esteemed clients as follows:

In November 2017, we reached an agreement with the Belstar led consortium to sell their entire holding in ADB and, to subsequently invest the proceeds into uniBank.

This led to an agreement between both parties with a set timeline for closure of the transaction which would culminate in uniBank raising a minimum of GHS 600 million in capital and with Belstar acquiring a stake in uniBank.

Due to the delayed timeline of the equity investment, uniBank has taken the additional precaution of committing Belstar Capital to their obligation under the share subscription agreement by pledging all shares held by the Belstar led consortium in ADB to ensure that the transaction will be consummated and the proceeds from the sale of shares paid directly to uniBank.

It is against this background that Belstar Capital Ltd and other members of the consortium of shareholders have pledged their shares in ADB to uniBank to demonstrate their commitment to the agreement and the strategic direction of uniBank.

We wish to put on record that the pledge by members of the Belstar led consortium does not constitute a sale of shares to uniBank. It is only a demonstration of commitment by our capital raising partners and must be considered as such.

uniBank Ghana Ltd, as a leading indigenous bank, is still committed to the stability and development of our banking industry and will continue to play its part in propagating the necessary growth of the industry for the benefit of the good people of Ghana.

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