This is after the GAT injected GHC127 million into the operations of the bank.
Ghana Amalgamated Trust to be a 13% shareholder in ADB, here is why
The Ghana Amalgamated Trust (GAT) is expected to be at least a 13% shareholder in the Agricultural Development Bank (ADB).
On January 21, 2020, GAT completed the processes to inject capital in ADB for its recapitalization. This was to ensure that they met the minimum capital requirement set by the Bank of Ghana for all commercial banks as part of its reforms of the banking sector.
After the investment, it is said that ADB is now having capital strength of about seven hundred million cedis.
The Managing Director of ADB, Dr. John Kofi Mensah said GAT now has access to a share of the ownership of the bank.
“Definitely all the shareholding structure will drop as it is not targeted at a particular shareholder. GAT’s ownership will be between ten and thirteen percent in terms of shareholding,” he told Citi Business News on the sidelines of the company’s thanksgiving service on Sunday, February 2, 2020.”
Before GAT came on board, the shareholding structure of ADB comprised; Financial Investment Trust – 60.50%, Government of Ghana – 32.30% and Retail investors & ADB staff – 7.20%.
Dr Kofi Mensah has said that he is optimistic that the capital injection will help in achieving the strategic plan set by the bank by 2022.
“We also had capital from the government of Ghana which was offloaded to GAT in the form of an SPV and at the moment, in our books, we have a stated capital of GH¢700 million. So, ADB is now well poised to deliver and also to deliver especially to the agribusiness sector.”
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