Ghana’s Largest Public Share Sale Stopped by Court

Ghana’s Largest Public Share Sale Stopped by Court

According to a Bloomberg report, Ghana’s largest public share sale by state-owned Agricultural Development Bank (ADB) has been put on hold after the country’s High Court ordered an injunction brought to it by labor unions.

The initial public offer (IPO) was seeking to raise almost 400 million cedis or $100 million by selling a 48 percent stake owned by the government in the agricultural lender.

The IPO was that was scheduled to end on August 21, had already run for about two weeks. ADB said applications and payments made before the injunction was issued by the High Court will remain valid

A union representing the employees of ADB, The Union  of Industry, Commerce and Finance, sued the bank last week to force the lender to seek approval for the share sale from lawmakers by submitting a proposal to Parliament.

In a July 3 report by Bloomberg, the workers group chairman, Mark Imoro said that bank had also breached a decision reached during a labor meeting in June to delay the IPO until September to allow for time to solve a disagreement between management and the unions.