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Business News of Thursday, 7 May 2015

Source: Starrfmonline.com

ADB to list on stock exchange despite workers protest

The Agricultural Development Bank (ADB) has been given the green light to go ahead with the planned sale of 70% of its shares to the public after the necessary consultations with the workers.

Labour Minister Haruna Iddrisu who met the management and workers of the Agric-inclined bank over the misunderstanding that has erupted between them as a result of the decision to list on the stock exchange and the planned sale of its head office told the media Wednesday that the policy to enlist on the stock exchange “remains same”.

However, on the sale of its head office, the former trade minister said any plan towards offloading the property must be put on hold.

“You are not to proceed further with the sale of ADB house,” he directed the board.

There has been a standoff between the management of the bank and workers over the past few weeks as the workers accuse the management of taking imprudent decisions.

They contend that it is unwise for the management to seek to raise Ghc200 million through the stock exchange when it has an uncollected debt of over Ghc600 million sitting on its books.

But the managing director of the bank Stephen Kpordzih last week told a news conference that listing on the stock exchange is one sure way to redeem the bank from its current financial predicament.

“The listing on the Ghana Stock Exchange is a means to basically give Ghanaians a sense of ownership, expand the shareholder base and increase the equity base of ADB. We are determined to remain an indigenous institution, hence our choice to go to the Ghana Stock Exchange to raise additional capital.

“This will enhance access to funding and boost the competitiveness of ADB. The end result will be very beneficial to the Bank, stakeholders, country and our customers,” he said.