ADB suspended from Ghana Stock Exchange over 'purported takeover'

BY: Maxwell Akalaare Adombila

The Ghana Stock Exchange (GSE) has temporarily suspended the ADB Bank from trading pending a clarification on the "purported takeover" of the indigenous lender by its counterpart, UniBank.

The suspension takes immediate effect.

A circular from the GSE said the suspension is in line with Section 7 of the GSE Automated Trading Rules (ATS).

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

Following reports of the takeover, the circular said "the Managing Director of the Ghana Stock Exchange (GSE), (Mr Kofi Yamoah), in consultation with the Chairman of the GSE Council, has suspended trading in the shares of ADB effective March 7, 2018.

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"This is to allow the GSE clarify news on a purported take-over of ADB.

"The investing public will be duly informed of the outcome and resumption of trading in the shares of ADB," it concluded.

Read also: unibank takes over ADB

The suspension in the trading of ADB on the GSE followed news reports that key shareholders of the bank, led by Belstar Capital, had pledged their shares and voting rights, among others to UniBank Ghana Limited.

This meant that uniBank, an indigenous lender, had been given rights of ownership of ADB, which was a state-owned bank until it was listed on the GSE in 2016.

Meanwhile, Graphic Online can confirm that the central bank will denounce the transaction as null and void later today, Wednesday march 7.