Agricultural Development Bank’s Initial Public Offering (IPO) would be delayed further until at least Thursday, 30th July 2015 when the court sits and possibly rules on the substantive case.
An Accra High Court dismissed the application brought by lawyers for adb for an order to discharge an order of 10-day interim injunction that was granted by the court on 10th July 2015.
The bank’s application was to challenge another one filed by the Union of Industry, Commerce and Finance Workers (UNICOF), asking for an extension of the initial 10-day interim injunction it secured earlier.
The lawyer for UNICOF, Charles Bawaduah explained to Joy Business the outcome of today’s court proceedings and the implications for the IPO.
“At the hearing, it was obvious that the bank’s application could not be granted because the order for which they wanted to discharge elapsed yesterday and so there was no order to discharge, and so the judge in her wisdom decided to dismiss the application brought by ADB.
“What it means, therefore, is that the bank cannot proceed with the sale of its shares because the union has filed the notice served on the bank for an order of interlocutory injunction and because of that the bank must now wait until the case has been heard,” he said.
The Securities and Exchange Commission (SEC) told Joy Business the bank can apply for an extension of the duration for its Initial Public Offering (IPO) once the court gives the green light for the process to continue.
Source: myjoyonline
