BANK OF GHANA ANNULS SHARE PURCHASE IN ADB.

The apex bank in Ghana, The Bank of Ghana, has annulled the purchase of more shares in ADB Bank Ltd because it was not in the spirit of the law.

According to the apex bank, during a recent public offer by ADB bank, Belstar Capital Ltd and and Starmount Development company ltd had connived with SIC Financial Services Ltd to end up with over 50% of the issued share capital of ADB without any formal official approval.

To boot, says the apex bank, the shares were acquired with funds got from Unibank Ghana Ltd not meant for such onlending.

Unibank had obtained the funds so lent through emergency liquidity support window which are not meant for such lending.

In the process Belstar and Starmount acquired 24% and 11% new holdings respectively which gave over 50% of ADB's shares and appointed their representatives to the board.

Hence, says the Bank of Ghana, the duo were with immediate effect prohibited from exercising any voting rights attached to the acquired shares subsequent to the annulment and their appointees to the board were also prohibited from parading themselves forthwith as ADB directors.

Because of the annulment, the Ghana Stock Exchange suspended trading in ADB shares on July 17 and trading is to resume today July 20.

The suspension became necessary, says the Exchange, to avoid disorderly trading, market and investor abuse and avoid investors making decisions that may make them worse off.

Unibank, says Bank of Ghana was currently under administration and it has reason to believe that the share purchase was not the first time such not too official deals had been struck between the duo and SIC Financial Services Ltd.

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