Local pharmaceutical giant Dannex, has welcomed yesterday’s Accra High Court ruling which cleared pharmaceutical firm Starwin of any wrong doing in the sale of majority of its shares to it through a Rights Issue.
Starwin in December 2014 sold 68.64 percent stake of the company to Dannex at a cost of over 5.5 million cedis through a Rights Issue.
But the Board of Directors of Starwin was subsequently dragged to court by some members of its board as well as Mirfield properties limited over allegations of violating Starwin’s regulations during the issue.
However after close to two years, an Accra High court presided over by Justice Eric Kyei Baffour yesterday ruled that the regulations of Starwin Products Limited were not breached in the conduct of the Rights Issue.
Speaking to Citi Business News after the court ruling, the company secretary for Starwin Kwesi Austin said the company was pleased with the latest development.
According to him, the ruling will reassure the shareholders of engaging in legal transaction that will bring them good returns.
“For our shareholders it represent a confirmation that the process that the company conducted was proper and therefore any shareholder who acquired shares under this Rights Offer has validly acquired the shares,” he stressed.
He stated that with the court case out of the way, the Board of Directors and management are poised to focus their full attention on the activities of the company to make it competitive in the pharmaceutical industry.
“The company can continue to focus more on the governance of the company and delivering value for the company without having this issue of share at the backs of their minds,” he said.
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By: Vivian Kai-Lokko/citibusinessnews.com/Ghana