ADB denies uniBank takeover reports


ADB Bank has denied media reports that uniBank has taken over its operations.

Media reports on Wednesday stated that four shareholders of ADB, comprising Belstar Capital, Starmount Development company, EDC as well as SIC Financial Services Limited, have pledged their shares, proceeds, entitlement and voting rights to uniBank, giving it the power to take over the bank.

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Related: uniBank clarifies ADB "take over"

But in a press statement signed and issued by the chairman, the bank  debunked the media report, adding that a pledge by the shareholders does not give uniBank the power to take over the bank.

“It is the opinion of adb that a pledge does not have the effect of the transfer of ownership. Thus 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

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Read also: We've not approved takeover of ADB - BoG Governor speaks”.

The statement pointed out that “ in accordance with the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), “… a person shall not without the prior approval in writing of Bank of Ghana enter into an agreement or arrangement which will result in the change in control of a bank, specialised deposit-taking institutions or financial holding company”.

It reminded the shareholders that “for the purpose of share acquisition in financial institutions, the Bank of Ghana must grant approval of share acquisitions of five, ten, thirty, fifty or seventy-five percent of equity thresholds”.

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Read also: uniBank’s takeover of ADB null and void – BoG

The statement, however, admitted that the Bank has received letters from Belstar Capital Limited, EDC Limited and Starmount Investment Limited having pledged their various shares in the Agricultural Development Bank Limited to Unibank

According to the statement, adb is also in discussion with the Ghana Stock Exchange to restore trading on the Exchange.

Making reference to the position of the Bank of Ghana, the statement said the Governor of Bank of Ghana during the commissioning of the Ecobank Head office in Accra, on 7th March, 2018; emphatically denounced as null and void the purported takeover of adb.

“We therefore wish to assure the Bank’s numerous customers and the general public that the shareholding of the Bank remains unchanged and customers accounts and investments are adequately protected. Customers are particularly advised to go about their normal transactions with the Bank”. It said.

Related: unibank takes over ADB