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SIC-FSL denies pledging shares as Unibank makes U-turn

SIC Financial Services Limited (SIC-FSL) one of the shareholders of ADB has denied having pledged its shares in ADB to uniBank in fulfillment of an earlier financial commitment.

A source within the company tells that, SIC FSL which is an arm of the State Insurance Company (SIC) a government entity could not have been part of the consortium, led by Belstar Capital–a turnkey project finance and implementation institution–also includes Starmount Development Company Limited, EDC Investments Limited and SIC-FSL to pledge their shares, proceeds, entitlement and voting rights to uniBank.

The news comes as a surprise to many, as it is contrary to earlier reports suggesting that, the company is part of a consortium of shareholders of adb who have pledged their shares.

Shares pledged to uniBank, which totals 51 percent, means that uniBank was to now hold a controlling stake in ADB.

This comes after, uniBank itself the bank that was supposed to have taken-over ADB in a quick U-turn denied reports that, it has taken over adb.

In a statement copied to, from the bank, and signed by Dr. Kwabena Duffuor Jr is the CEO, now stated that, “we are NOT taking over ADB. We wish to provide clarification for the benefit of the investing public and our esteemed clients.”

An interesting point that was made in the statement is the fact that, in November 2017, uniBank reached an agreement with Belstar Capital led consortium to sell their entire holding in adb and, to subsequently invest the proceeds into uniBank.

“This led to an agreement between both parties with a set timeline for closure of the transaction which would culminate in uniBank raising a minimum of GHS 600 million in capital and with Belstar acquiring a stake in uniBank,” the statement said.

But due to delayed in the timeline as set by both parties, uniBank then took the additional precaution of committing Belstar Capital to their obligation under the share subscription agreement.

The statement further stated that, “it is against this background that Belstar Capital Ltd and other members of the consortium of shareholders have pledged their shares in ADB to uniBank to demonstrate their commitment to the agreement and the strategic direction of uniBank”.

UniBank therefore wish to put on record that the pledge by members of the Belstar led consortium does not constitute a sale of shares to uniBank but it’s only a demonstration of commitment by our capital raising partners and must be considered as such, the bank said in its statement.

Unibank earlier confirms takeover of ADB

unibank’s CEO and Managing Director, Dr. Kwabena Duffour Jr earlier on Wednesday March 8, 2018, confirmed 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 with a pledge of shares and voting rights of the consortium of shareholders in ADB Bank.

Source: B&FT | Ghana

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