ADB makes rights issue offer to shareholders

The Agricultural Development Bank (ADB) Limited will by April of this year, make an allotment of shares to investors following the announcement of a Renounceable Rights Offer, on February 28, 2019.

The offer is expected to make available 48,949,580 ordinary shares of no par value at GHc 4.76 per share, which will be made in a ratio of one new share for every 4.7176 existing shares held by a qualifying shareholder.

The offer was approved by the shareholders of Agricultural Development Bank Limited at its Extraordinary General Meeting on Thursday, December 20, 2018 and by the Securities and Exchange Commission on Tuesday, February, 26, 2019.

The move is also in accordance with Section 34 of the Companies Act 1963 (Act 179) and Regulation 40 (b) of the Ghana Stock Exchange Listing Rules, 2006.

The Register of Members of Agricultural Development Bank Limited will hence be closed to the General Public on Wednesday, March 13, 2019. The Ex-Rights date has been set for Friday, March 8, 2019.

Only shareholders on the Register of Members of Agricultural Development Bank Limited at the close of business day on Tuesday, March 12, 2019 will therefore be entitled to exercise their rights under the offer.

Serengeti Capital Markets is the Lead Manager and Sponsoring Broker for the offer.

Earlier this year, the Bank of Ghana and government have indicated efforts to offload their shares in the Agricultural Development Bank (ADB) in the next three years to the public.

Government together with the central bank control nearly 90 percent of the bank’s shares affecting trading on the bourse.

In 2018, the Bank of Ghana annulled the acquisition of shares of Agriculture Development Bank held by Belstar Capital, Starmount Development Company Ltd, SIC Financial Services Ltd and EDC Investments Ltd because of reservations the regulator had but now wants to free its hands.

By Joshua W. Amlanu