The nation has been gripped in recent weeks by the controversy surrounding the Agyapa Royalties transaction, which seeks to encumber the bulk of Ghana’s future gold royalties to a special purpose vehicle (SPV) companyin Jersey in the Channel Islands, in what some lawyers have argued is for an indeterminate term.
A raging debate regarding several aspects of the transaction has ensued in the country, including;
Perhaps however, the issue that has stoked the most attention and controversy, and in some cases outrage, is the Government of Ghana’s (GOG) overall valuation of the Agyapa Royalties transaction at $ 1 billion, ahead of the intended listing of the Jersey SPV on the London Stock Exchange (LSE).
Two articles challenging this valuation of the transaction have since been published and have garnered much attention. These are the articles by Fui Tsikata/Kofi Ansah and Bright Simons of IMANI Africa.
Both articles show that GOG’s valuation represents a considerable under-valuation of the transaction.
Consequently, Ghana would be at a significant disadvantage if the transaction proceeds in its current form.
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