Investment Banker, Mahama Iddrisu has said the decision by the Ghana Stock Exchange (GSE) to suspend the listing of ADB on the stock market was a hasty one.
According to him, the GSE should have done due diligence before suspending adb from the listed companies.
The Ghana Stock Exchange on Wednesday (March 7, 2018), suspended trading in the shares of adb following a purported takeover of the bank by uniBank.
The managers of the bourse have since lifted the suspension.
But reacting to the development, Mahama Iddrisu told Citi Business News the decision was rushed.
“I don’t know whether they actually picked the information from the paper or they actually had written letters or notices to them to be able to change their stand on the suspension,” he stated.
Mahama Iddrisu was of the view that the GSE did little to investigate adb before suspending its trading activities.
“But I will say that they actually thought they would do a thorough investigation and get information directly from the parties that were involved to be able to either suspend or not suspend the trading, I don’t know whether they did that but from my perspective, I think that it was the publication that actually led to the suspension,” he added.
Background
The Ghana Stock Exchange (GSE) yesterday 7th March 2018, suspended the Agricultural Development Bank (adb) following a purported takeover of the bank by uniBank.
A statement from the GSE said the action was taken pursuant to section 7 of the GSE Automated Trading rules.
“With reference to Section 7 of the GSE Automated Trading Rules (ATS), the Managing Director of the Ghana Stock Exchange (GSE), in consultation with the Chairman of the GSE Council has suspended trading in the shares of ADB effective March 7, 2018.”
“We are taking this action so that ADB provides full information and clarity on the matter including whether the purported take-over complies with the Securities and Exchange Commission and the Bank of Ghana requirements,” the statement GSE added.
Unibank had confirmed to Citi News that it has gone into a transaction with four major shareholders of Agricultural Development Bank (adb) that has effectively given them majority control of the state bank.
It said the move follows the pledging of shares and voting rights of the consortium of shareholders in adb Bank.
The shareholders comprise; Belstar Capital, Starmount Development company, EDC as well as SIC Financial Services Limited.
According to Unibank, the move is an attempt to get the shareholders commit to a financial obligation they had entered into.
But checks by Citi Business News have shown that SIC-FSL have not pledged its shares to Unibank.
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By: Jessica Ayorkor Aryee & Anita Arthur/citibusinessnews.com/Ghana