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adb IPO: Court throws out UNICOF’s case

An Accra High Court has thrown out an application for an injunction by the Union of Commerce, Industry and Finance (UNICOF) to stop the management from listing the Agriculture Development Bank (adb) on the stock exchange.

The IPO is aimed at raising about $300 million to support the Bank’s operations.

The move has met some stiff opposition from UNICOF and the Minority in Parliament who claims the sale of adb is not right.

At a hearing in Accra today, the Court dismissed the injunction application saying it will hurt the bank if the injunction is allowed.

In her ruling, Justice Gifty Addo further added that the injunction if granted could also affect the investors – Alas Mara and Norwegian Development Fund (NORFUND) who have invested heavily in the company.

Speaking to Citi Business News, Head of the legal department at adb, Maxell Kofi Amoako said, “they [UNICOF] came to court to stop us from proceeding with the IPO. The court says no, the bank stands to lose larger as against their level interest. So what it means is that ordinarily we should be able to proceed with the IPO.”

Meanwhile, Counsel for UNICOF, Lawyer Charles Bawaduah hinted to Citi Business News that they “will appeal the case.“

UNICOF had earlier secured a 10-day interim injunction order from an Accra High Court against the adb’s IPO.

Source: citifmonline

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