Pulse.com.gh logo

No way! Court stops adb’s IPO again

adb's Initial Public Offer (IPO) has been suspended for the second time after an Accra High Court granted an interim injunction order.

  • Published:

The Agricultural Development Bank’s (adb) Initial Public Offer (IPO) has been suspended for the second time after an Accra High Court granted an interim injunction order.

The order was brought against adb by the General Secretary of the Industry Commerce and Finance Workers (UNICOF), John Esiape.

According to the suit cited by Citi Business News, the court has granted a 10-day interim injunction to allow for a substantive case to be heard.

This means adb cannot continue the sale of its shares and also its equity arrangements with Atlas Mara Ltd and Norwegian Development Fund for development fund who are seeking equity shares of 25% and 15% respectively.

“It is hereby ordered that the defendant (ADB), agents, privies, assigns and contractors are restrained from proceeding with the initial public offer of its shares,” the court order stated.

adb is to halt the sale and all other arrangements pending the determination of the suit.

The court granted the interim injunction on Friday July 10 and adb is expected to be served on Monday July 13.

A Member of Parliament Dr Charles Asibey Yeboah earlier went to the Supreme Court over the launch of the IPO but later withdrew the case.

His lawyer Alex Afenyo Markin however told Citi News later that they filed the writ again after they withdrew it to do some ammendments.

What does UNICOF want?

1. A declaration that the agreement signed by the 1st defendant ADB with two foreign companies namely Atlas Mara Limited and the Norwegian Investment fund for Developing Countries, for the sale and purchase of 25% and 15% respectively of the issued shares of ADB without parliamentary approval is unconstitutional and in violation of Article 181 clause 1 of the 1992 constitution.

2. UNICOF is also seeking a declaration that the government has not got the sole mandate to authorize ADb to sell shares to the public and trade on the stock exchange saying that the general oversight duties of Parliament under article 108 of the 1992 constitution, Article 181 clause 1 of the 1992 constitution and section 19 of the Act 286 requires the concurrent approval of parliament.

3. They are also seeking approval that the approval and authorization given to ADB to trade on the Ghana Stock Exchange by the Securities and Exchange Commission without first confirming whether Parliament has approved the decision of cabinet permitting the bank to issue shares to the public undermines the constitutional mandate of parliament as enshrined in article 181 clause 1 of the 1992 constitution and section 19 of the Act 286 among others.

4. The suit says the first and second defendants being Agricultural Development Bank (ADB) and the Attorney General and the Minister of Justice respectively will on receipt of the suit will have to file or cause to be filed a statement of defendant’s action at the suit of UNICOF. Citi Business News sources say the two defendants in the case were served yesterday.

Source: Citifmonline.com

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Illegal Operations Menzgold extends suspension of gold vault market servicesbullet
2 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
3 Ponzi schemes in Ghana These investments are Ponzi schemes in Ghana,...bullet
4 Forensic Audit 6 state institutions misappropriate GH¢800 millionbullet
5 Illegal Operations Menzgold customer threatens to sue over...bullet
6 Kweku Adoboli Rogue banker denies saying Ghana is worse than...bullet
7 Ghana-Chinese Relations 6 reasons why the StarTimes deal is...bullet
8 Kotoka International Airport GACL to move all domestic...bullet
9 Special Prosecutor Here’s why Martin Amidu can’t work...bullet
10 How to create a verified PayPal account Learn how to...bullet

Top Videos

1 Money Alert Meet Africa's richest womanbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Former Capital Bank staff grills pork for survivalbullet
4 Support Finance minister buys Kantanka carbullet
5 Selorm Adadevoh MTN CEO dances Agbadzabullet
6 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
7 Plane Crash Starbow suspends operations following plane crashbullet
8 Dr Joseph Siaw Agyepong Nobody can collapse my company –...bullet
9 New Discovery Ghana discovers new mineral, lithium in...bullet
10 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet