Prime News Ghana

ADB dismisses purported takeover reports

By Justice Kofi Bimpeh
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The Agricultural Development Bank, ADB, has dismissed media reports that uniBank has taken over 51 percent shares of the bank.

A statement signed by the Board Chair of ADB on Wednesday, March 7 after a confirmation by Executive Director of uniBank Clifford Mettle the bank’s acquisition of 51 percent shares in the ADB is a strategic alignment said:

“We refer to the news item on both electronic and print media regarding a purported takeover of the Agricultural Development Bank Limited by Unibank and wish to strongly deny any takeover of the bank.

Read also: BoG to declare uniBank’s takeover of ADB null and void 

“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. 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.”

According to the statement, 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.

Related: ADB suspended from Ghana Stock Exchange over 'purported takeover'

“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.”

“The Act continues that, for the purpose of share acquisition in financial institutions, the Bank of Ghana must grant approval of share acquisitions of five, ten, thirty, fifty or seventy-five percent of equity thresholds,” the statement added.

www.primenewsghana.com/ Ghana News