GSE suspends ADB from listed entities

In a statement issued by the GSE, it explained that they are taking this decision as they wait for ADB Bank to furnish them with full details and clarity on the matter.

This follows the takeover of the bank by uniBank.

“We are taking this action so that ADB provides full information and clarity on the matter including whether the purported take-over complies with the Securities and Exchange Commission and the Bank of Ghana requirements.”

This means Belstar Capital has pledged their shares, proceeds, entitlement and voting rights to a leading local bank, uniBank.

Belstar Capital, an investment and project finance institution has started a move to purchase a significant number of shares at uniBank as a means to make the bank qualify the new minimum capital policies as stipulated by the Bank of Ghana.

These institutions took up a substantial stake in ADB’s Initial Public Offering (IPO) in 2016 that paved the way for the bank to go public.

The shares pledged to uniBank, means it now holds 51% controlling stake in ADB and with the additional majority voting rights, can now determine the strategic direction of ADB.

Despite the pledge of shares and voting rights, this does not constitute an outright sale and therefore does not contravene any rules and regulations of industry regulators, including the Securities and Exchange Commission (SEC), Bank of Ghana (BoG) and the Ghana Stock Exchange (GSE).

The move is believed to form part of the investment and project finance institution’s effort at raising the estimated GH¢600 million to secure its new shares at Unibank.

Read the full statement below.

With reference to Section 7 of the GSE Automated Trading Rules (ATS), the Managing Director of the Ghana Stock Exchange (GSE), in consultation with the Chairman of the GSE Council has suspended trading in the shares of ADB effective March 7, 2018.

We are taking this action so that ADB provides full information and clarity on the matter including whether the purported take-over complies with the Securities and Exchange Commission and the Bank of Ghana requirements.

The investing public will be updated as and when further information is received.

Issued in Accra, this 7th day of March 2018.

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