The teachers fund says it is likely to acquire some shares in the Agricultural Development Bank (ADB) should it go public by the end of the year.
This follows moves by ADB to list on the Ghana Stock Exchange (GSE). A successful listing of ADB, on the Ghana Stock Exchange will see Bank of Ghana offloading its entire 48% stake in the Bank.
The central bank has been criticized over the years for owning shares in a bank it regulates. There have been discussions among the Bank of Ghana, Agricultural Development Bank and the Finance ministry over the offloading of BOG’s shares for some time now.
Government of Ghana last year approved for the bank to go public rather than looking for a strategic investor or a golden share.
Though Local investors have remained tight lipped over owning shares in ADB when its goes public, there are fears that some locals may front for foreigners to acquire the shares. Such move the Managing Director of ADB bank Stephen Kpordzih warns will only go to destroy the local niche of the bank.
General Manager of the Teacher’s Fund Foster Buabeng however says the fund would study the fundamentals and if they are good the fund would invest in ADB when its goes public.
“If you look at the fund portfolio, we have listed securities as part of it, what we do is that any company that we look at the fundamentals of potential investments and if its god we invest. So as ADB is expected to make an offer to the public to invest in the company, we will look at the fundamentals and if we study it and the fundamentals are good and that we should invest in the company, why not we will invest.”
Foster Buabeng who earlier spoke to Citi fm said they have realised that the banking stocks are very good with the banks paying very good dividends “and if one looks at capital gains they are doing very well being one of the reasons why they will want to invest in a bank like ADB when its goes public”.
