The Ghana Stock Exchange has suspended trading in the shares of the ADB Bank Limited, a day after stakes of four of the bank’s institutional shareholders were annulled.
The suspension, which took effect today, Tuesday, means that investors can neither buy nor sell shares of the bank until further notice.
This is the third time the GSE is suspending trading in the shares of the agric-bias lender after it successfully listed on the bourse in December 2016.
The suspension followed stern action from the Bank of Ghana that annulled the stakes of four institutional investors in ADB.
The affected institutions are Belstar Capital, Starmount Development Corporation, SIC Financial Services Limited and EDC Investment Limited.
The central bank explained that its investigations showed that the purchase of shares of ADB by the firms and the relationship of Belstar Capital with uniBank Ghana Limited (currently under administration) contravened aspects of the Banks and Specialised Deposits-Taking Institutions Act.
SUSPENSION OF TRADING IN THE SHARES OF AGRICULTURAL DEVELOPMENT BANK LIMITED
The Ghana Stock Exchange PR. No. 290 of July 17, 2018 regarding annulment of acquisition of shares in Agricultural Development Bank Limited (ADB) by Bank of Ghana refers.
The Exchange pursuant to Rule 7 and Rule 14 of its Trading and Listing Rules respectively has suspended trading in the shares of ADB for three (3) consecutive business days effective Tuesday, July 17, 2018. The suspension of trading in ADB shares is necessary to prevent:
(a) disorderly trading in the shares of ADB; (b) market and/or investor abuse; and (c) investors taking decisions that may make them worse off than would have been the case if they possess more information or clarity on the matter.
Trading in ADB shares will resume on Friday, July 20, 2018.
Issued in Accra, this 17th day of July, 2018