uniBank has denied reports that it has taken over adb.
Earlier reports stated that uniBank has taken over adb after four shareholders of adb comprising Belstar Capital, Starmount Development company, EDC, as well as SIC Financial Services Limited, pledged their shares, proceeds, entitlement and voting rights to uniBank, giving it control over adb.
The Chief Executive Officer of uniBank, Dr. Kwabena Duffuor Jr subsequently told Bernard Avle on the Citi Breakfast Show on Wednesday[3,7,2018] that the shareholders have pledged their shares to uniBank, hence uniBank has control over adb.
“Down the line we might decide to have a proper transfer where we need the approval of the various regulatory bodies, but for now, we still have the power, we still have the control over adb,” he told Bernard Avle on the show.
But in a twist of event, a statement issued by uniBank, and signed by Dr. Duffuor Jr, said “we are NOT taking over ADB”.
“We wish to provide clarification for the benefit of the investing public and our esteemed clients,” it added.
Recounting how the relationship between uniBank and Belstar started the statement pointed out that in November 2017, uniBank reached an agreement with the Belstar led consortium to sell their entire holding in adb and, to subsequently invest the proceeds into uniBank.
“This led to an agreement between both parties with a set timeline for closure of the transaction which would culminate in uniBank raising a minimum of GHS 600 million in capital and with Belstar acquiring a stake in uniBank”.
It explained that, due to the delayed timeline of the equity investment, uniBank took the additional precaution of committing Belstar Capital to their obligation under the share subscription agreement by pledging all shares held by the Belstar led consortium in ADB to ensure that the transaction will be consummated and the proceeds for the sale of shares paid directly to uniBank.
“It is against this background that Belstar Capital Ltd and other members of the consortium of shareholders have pledged their shares in ADB to uniBank to demonstrate their commitment to the agreement and the strategic direction of uniBank”.
“We wish to put on record that the pledge by members of the Belstar led consortium does not constitute a sale of shares to uniBank. It is only a demonstration of commitment by our capital raising partners and must be considered as such,” the statement said.
Source: Citi Business News