uniBank Explains ADB ‘Take Over’

uniBank, a leading indigenous bank has sought to clarify the purported takeover of the Agricultural Development Bank (ADB) by the bank.

According to the local bank, it has not taken over ADB as it was reported in some section of the media.

Some section of the media on Wednesday reported that uniBank currently controls 51 percent shares in ADB after a consortium of financial institutions that control majority shares in ADB handed over their entitlement and voting rights to uniBank.

The reports stated that Belstar Capital, led the consortium of financial institutions which includes Starmount Development Company Limited, EDC Investments Limited and SIC-FSL to seal the deal.

However, in a statement released to clarify the issue, the Chief Executive Officer, uniBank (Ghana) Ltd, Dr. Kwabena Duffour Jr. said “We wish to state emphatically that we are not taking over ADB”.

“In November 2017, we reached an agreement with the Belstar led consortium to sell their entire holding in ADB and, to subsequently invest the proceeds into uniBank.

“This led to an agreement between both parties with a set timeline for closure of the transaction which would culminate in uniBank raising a minimum of GHS 600 million in capital and with Belstar acquiring a stake in uniBank.

“Due to the delayed timeline of the equity investment, uniBank has taken the additional precaution of committing Belstar Capital to their obligation under the share subscription agreement by pledging all shares held by the Belstar led consortium in ADB to ensure that the transaction will be consummated and the proceeds for the sale of shares paid directly to uniBank.

“It is against this background that Belstar Capital Ltd and other members of the consortium of shareholders have pledged their shares in ADB to uniBank to demonstrate their commitment to the agreement and the strategic direction of uniBank. We wish to put on record that the pledge by members of the Belstar led consortium does not constitute a sale of shares to uniBank. It is only a demonstration of commitment by our capital raising partners and must be considered as such.

“uniBank Ghana Ltd, as a leading indigenous bank, is still committed to the stability and development of our banking industry and will continue to play its part in propagating the necessary growth of the industry for the benefit of the good people of Ghana”, the statement said.

ADB Denies Take Over

The Agricultural Development Bank has also issued a statement to the Ghana Stock Exchange strongly denying any takeover of the Bank.

In the statement, ADB indicated that it had received letters from Belstar Capital Limited, EDC Limited and Starmount Investment Limited having pledged their various shares in ADB to Unibank.

“It is the opinion of ADB that, a pledge does not have the effect of the transfer of ownership.  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 ADB, let alone constitute a takeover of the Bank by Unibank.

“ADB therefore assures its shareholders and the general investing public that the shareholding of the Bank remains unchanged”.

GSE Lifts Suspension On ADB

When the news broke that uniBank has taken over ADB, the Ghana Stock Exchange quickly moved to suspend trading in the shares of ADB until further notice.

However, the GSE has lifted the suspension of trading in the shares of ADB with immediate effect.

Source: The Publisher