BoG increase stake in ADB…converts GH¢150m debt to equity

The Central Bank, through its wholly-owned subsidiary, Financial Investment Trust, has increased its stake in the Agricultural Development Bank (ADB) by converting a GH¢150million debt or loan to an equity stake.

In a release issued by the Listing Unit of the Ghana Stock Exchange (GSE), the debt, which the agric lender owes the Bank of Ghana was converted at a price of GH¢3.25 per share, which resulted in the issuance of 46,153,846 new ordinary shares. This takes the total number of ordinary shares to 346,952,253 shares of no par value.

“The new shares will be admitted to the main market of the Ghana Stock Exchange and rank pari passu to existing ordinary shares in ADB in all respects. The transaction was approved by the shareholders of ADB at its Extraordinary General Meeting on Thursday, December 20, 2018, and by the Securities and Exchange Commission on Thursday, January 30, 2020,” the statement said.

The Central Bank, until July, 2018 held less than 10percent equity stake in ADB but with the annulment of the shares of Belstar, Starmount and others under controversial circumstances, the regulator, through the Financial Investment Trust, held up to 60.5percent of shares with the Government of Ghana maintaining 32.3percent shares.

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But the introduction of Ghana Amalgamated Trust (GAT) as a new shareholder in 2020, which injected some GH¢127million last month and increased the total ordinary shares to 300,798,407, the new shareholding structure of the bank is yet to be clarified by the bank or the regulator. Serengeti Capital Markets is the Lead Manager and Sponsoring Broker for the offer.

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