BoG has not approved takeover of ADB by unibank – Governor

Governor of the Bank of Ghana, Dr. Ernest Addison

The Governor of the Bank of Ghana, Dr. Ernest Addison has stated that the central bank has not approved any takeover of ADB by Unibank.

According to Dr. Addison, his outfit heard of the news in the media today and has not approved any such deal.

The governor’s comments come just after the Ghana Stock Exchange said it has suspended the trading of the bank’s shares effective Wednesday March 7, 2018, pending clarity to be submitted by the bank.

A statement from the exchange said, “the suspension is to allow the GSE clarify the news on a purported take-over of ADB.”

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

unibank a privately owned local bank is set to assume a controlling interest in ADB after a consortium led by Belstar Capital with other shareholders pledged their shares, proceeds, entitlement and voting rights to unibank.

The consortium comprises four shareholders including; Belstar Capital (24%), Starmount Development company (11%), EDC Investments Limited (6%) as well as SIC Financial Services Limited (10%) bring the shareholding capacity of the consortium to 51% which is to go to Unibank.

Its means that, government will be left with a total of 49% stake in the bank giving Unibank access to control majority ownership in ADB and with the additional majority voting rights, can now determine the strategic direction of ADB.

Speaking at the commissioning of the new Ecobank Head office in Accra today, the Governor of the Bank of Ghana, Dr. Ernest Addison said the central bank has not approved any deal which see the takeover of ADB by Unibank.

“Let me respond to some developing story this morning, the Bank of Ghana has not given approval to the purported takeover or through the pledging of shares to Unibank.”

unibank confirms takeover of ADB

unibank’s CEO and Managing Director, Dr. Kwabena Duffour Jr today confirmed that it has gone into a transaction with four major shareholders of Agricultural Development Bank (ADB) that has effectively given majority control of the state bank with a pledge of shares and voting rights of the consortium of shareholders in ADB Bank.

Speaking on the breakfast show on Starr Fm a radio station belonging to the EIB Network, a member of the HODA group belonging his father, Dr. Kwabena Duffour Jr. said the plan is in the best interest of the banking industry.

Listen to the full interview with Francis Abban, the host of the Breakfast Show on Starr FM below;