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Business News of Friday, 14 December 2018

Source: citibusinessnews.com

ADB is not delisting from stock market – Kofi Yamoah

The managers of the Ghana Stock Exchange have dismissed claims that ADB is planning to delist from the stock exchange.

There have been reports that the new majority shareholders of ADB had taken the decision.

But the Managing Director of the stock exchange, Kofi Yamoah insists that is not the case.

“I have been privy to conversations on this subject matter and the impression I get from the shareholders is that this has never crossed their minds so I shouldn’t take it from that angle,” he stressed in an interview with Citi Business News.

He added, “I have not heard the news but in conversations that I am privy to, the emphasis is that the company will continue to be listed.”

The assertions that adb is getting off the stock market had been premised on the fact that the shareholders of the bank had changed.

This is because the former private shareholders; Belstar capital, EDC Investments, Starmount Limited as well as SIC Financial services limited, have all lost their stake to the Bank of Ghana and the Government of Ghana as major shareholders.

adb is currently working to meet the minimum capital requirement of 400 million cedis.

Amongst others, the bank intends to convert a subordinated debt of 150 million cedis owed the Bank of Ghana into equity.

Again, the bank is scheduled to hold an Annual General Meeting where it will seek shareholders approval to raise 383 million cedis in renounceable rights to issue.

Commenting on it, Mr. Yamoah said he expects the exercise to sail through despite the limited time to the recapitalisation deadline of December 31.

“I was privy to discussions in terms of they [adb] meeting the minimum capital requirement by December 31 so I know that pretty soon they will be calling a general meeting so that shareholders can take a decision for that,” he said.

adb’s stated capital as at September this year stood at 275 million cedis.

If the BoG’s debt conversion plan goes through, then the bank would be crossing the 400 million cedis mark to about 425 million cedis.

As at November, the Governor of the Bank of Ghana, Dr. Ernest Addison indicated that twenty-two banks have met the minimum capital of which two are mergers.