Audio By Carbonatix
Officials of Agricultural Development Bank (adb) have denied the bank has been taken over by another indigenous bank, uniBank, describing the report as pure lies.
Although there is an acknowledgement of moves to transfer a majority of the shares to uniBank, adb says such an action would have to be sanctioned by the Central Bank.
At the moment that has not been done despite receiving letters from the consortium of banks such as Belstar Capital Limited, EDC Limited and Starmount Investment Limited to that effect, adb said in a statement.
Reports about the takeover of adb shook the financial market resulting in the decision by the Ghana Stock Exchange (GSE) to suspend trading in shares of the bank.
Two other indigenous banks - UT and Capital banks - were acquired by GCB bank in August last year after the Bank of Ghana authorised the transaction.
Although uniBank Executive Director Clifford Mettle had said the takeover had been duly approved by the relevant institutions, the Central Bank has denied authorising it.
BoG Governor, Dr Ernest Addison
BoG Governor, Dr Ernest Addison said the Central Bank has neither sanctioned the change of adb ownership nor the willing of the majority shareholder's rights to uniBank.
Reacting to the report hours later, adb said a pledge to transfer rights and shares to a third party does not translate to a "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 the Agricultural Development Bank Limited or constitute a takeover of the Bank," it said in the statement.
But a lecturer with the University of Ghana Business School has questioned the intervention by both the Central Bank and GSE, saying it was "too quick."
"The whole thing is a process [but the two were too] quick to come out," Dr Lord Mensah told Evans Mensah on Joy FM's Top Story.
Reports about the takeover of adb shook the financial market resulting in the decision by the Ghana Stock Exchange (GSE) to suspend trading in shares of the bank.
Two other indigenous banks - UT and Capital banks - were acquired by GCB bank in August last year after the Bank of Ghana authorised the transaction.
Although uniBank Executive Director Clifford Mettle had said the takeover had been duly approved by the relevant institutions, the Central Bank has denied authorising it.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Academic City and partners issue white paper for stronger digital accountability as Ghana loses GH¢19.3m to cybercrime
14 minutes -
Blank passports, visa stickers found in office of Ghana Embassy IT officer accused of concealing digital records
16 minutes -
Africa’s youth are looking for jobs: The food system may hold the answer
23 minutes -
Fidelity Bank advocates stronger systems to unlock Ghana’s trade and enterprise potential
28 minutes -
COCOBOD CEO dismisses claims over new Cocoa Bill, says reforms will protect farms and improve sector
34 minutes -
Absa, Impact Food Hub empower agribusiness entrepreneurs for growth
39 minutes -
Access Bank Ghana secures certification as a Carbon Credit Broker
48 minutes -
Accra Mall ignites cultural heat this weekend with vibrant live music celebration
54 minutes -
Africa keeps rebuilding its food security every time a shipping lane closes
59 minutes -
Keta-Axim water transport route moves a step closer as government commissions feasibility study
1 hour -
Construction of Bolgatanga Airport to begin by end of 2026 – Mahama
1 hour -
Onion traders hail Trade Minister’s intervention as Ghana-Nigeria trade dispute eases
1 hour -
COCOBOD threatens to withdraw LBC licences over cocoa purchases on credit
1 hour -
Western Region needs stronger investment coordination to unlock economic potential — Joseph Nelson
1 hour -
Mahama donates hearse to Gonjaland Youth Association to support dignified burials
1 hour