We have not given uniBank power to takeover ADB – BoG clarifies

We have not given uniBank power to takeover ADB – BoG clarifies

- A consortium of financial institutions that control majority shares in the Agricultural Development Bank (ADB), has pledged its shares, proceeds, entitlement and voting rights to uniBank, a leading wholly-owned Ghanaian bank

- The BoG also says it is unaware of any takeover of ADB by uniBank

The regulator of commercial banks, Bank of Ghana has denounced the alleged takeover of ADB Bank [Agricultural Development Bank] by uniBank as null and void.

According to a report by Graphic Online, the BoG has a different position on the recent development and will be communicated by the Governor, Dr Ernest Addison soon.

uniBank on Wednesday confirmed to Citi News that it has gone into a transaction with four major shareholders of Agricultural Development Bank (ADB) that has effectively given majority control of the state bank.

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CEO of uniBank, Dr. Kwabena Duffour Jr. in an interview with Citi News said the plan is in the best interest of the banking industry.

For now, we have the power and control to change it from adb. Down the line we might decide to do a proper transfer where we will need the approval of the various regulatory bodies but for now we have the power and control over it,” he noted.

According to Dr Duffuor Jr, Belstar Capital, Starmount Development company, EDC as well as SIC Financial Services Limited, have all pledged their shares, proceeds, entitlement and voting rights to Unibank.

But the BoG says the decision by some shareholders of ADB to pledge their shares, proceeds, entitlement and voting rights to uniBank is not sanctioned by it.

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The thing is uniBank does not, in their own, have majority shareholding in ADB but what happened was some shareholders of ADB promised to support uniBank at the board level.

“But if someone pledges to support you, do you go out there to say you have taken over a bank? But can you even take over a bank without permission from the regulator,” a source at the BoG told Graphic Online.

You see the funny part, the regulator does not know anything about this; they had no faintest of ideas because nothing of that sort had come to their attention,” it added.

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Source: Yen.com.gh

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