High Court dismisses UNICOF’s suit against adb’s IPO

The High Court in Accra has dismissed the application by the Union of Industry, Commerce and Finance (UNICOF) for a perpetual injunction against the Initial Public Offer (IPO) of the Agricultural Development Bank (adb).

The court says UNICOF failed to justify cause for the application, whereas adb would suffer irreparable damage should the application be granted, according to Graphic Online’s correspondent, Mabel Aku Baneseh.

UNICOF went to court to seek a declaration that an agreement by ADB with two foreign companies - Atlas Mara Limited and the Norwegian Investment fund for Developing Countries, for the sale and purchase of 25% and 15% respectively of the issued shares of adb without parliamentary approval was unconstitutional and in violation of Article 181 clause 1 of the 1992 Constitution.

Other reliefs included a declaration that the Government of Ghana did not have the sole mandate to authorize adb to sell shares to the public and trade on the stock exchange.