UniBank Takes Over ADB

A Source close to the PUBLISHER Newspaper has revealed that UniBank, a leading local bank now owns a controlling interest in Agricultural Development Bank (ADB).

The local bank 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 source said Belstar Capital, led the consortium of financial institutions which includes Starmount Development Company Limited, EDC Investments Limited and SIC-FSL to seal the deal.

This means that UniBank now holds a controlling stake in ADB and with the additional majority voting rights.

“The proceeds and entitlement attached to the shares includes, but is not limited to, the voting rights at any general or extraordinary meetings and any future dividends that may accrue to those shares”, the source said.

The Minister of Finance in the 2018 budget disclosed that government was looking at merging Agricultural Development Bank (ADB) and National Investment Bank (NIB) in the creation of the National Development Bank.

Ken Ofori-Atta said with the two banks government is looking at using them to finance its industrialization and Agric agenda.

“The thinking process is clear that we need a strong and vibrant and well-capitalized enterprise development bank. This is to be able to support the Agriculture and industrialization drive,” the finance Minister recently said.

Government currently holds a significant stake in ADB and NIB.

ADB in 2015 floated shares in the stock market to raise capital for business expansion, and foster positive growth prospects.

The Bank has since been on a path of recovery, recording after-tax profit of GH¢50million for its third quarter 2017 results.

By: Cephas Larbi/ [email protected]