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GAT to Ayariga: We are not selling shares of bailed out banks

The Ghana Amalgamated Trust (GAT) has decribed claims that it is sell off shares of purchased banks to private individuals as false

Eric Nana Otoo, the managing director of the Ghana Amalgamated Trust (GAT) has dismissed reports suggesting the trust is selling shares of purchased banks to private individuals the country.

It comes after the MP for Bawku Central, Mahama Ayariga in a petition to the Bank of Ghana (BoG) alleged that GAT is planning to sell off shares of purchased banks to private individuals and is asking the central bank to respond in five days or face legal action.

Ayariga stated that information gathered shows that GAT has submitted a prospectus to the Securities and Exchange Commission (SEC) for approval to enable it to sell off its shares in these banks to some private individuals whose identity calls for some investigation.

Reacting to the development on the Asaase Breakfast Show on Friday(24 December) Otoo said “First is to clarify that we are actually not selling equity stakes in the GAT banks , that is not what is happening.”

The second thing to clarify too is, that remember we got 800 million cedis from government in 2019 that we used to re-capitalise initial set of banks, today GAT has submitted a prospectus to the Securities and Exchange Commission to raise the same 800 million cedis , so there is no valuation even involved , there is no gain involved in this process

He added “All that Gat is seeking to do is to be able to redeem the preference shares we had issued government for the initial 800 million so that we replace it with the private sector money which is in line with the original plan of GAT.”

Dr Otto explained GAT is rather issuing an initial public offer that every Ghanaians or institutions can Purchase to raise 800 million to pay back  government.

“And the third thing is that we haven’t appointed  a few people that we are issuing this shares to, this is a public offering and is going to be the first IPO for GAT , so we actually encouraging every Ghanaian , individuals and institutions so they can invest in it..  it is going to be listed on the Ghana Stock Exchange, those are the facts.”

About GAT

Incorporated under the Companies Act as a public limited liability company on December 17, 2018, Ghana Amalgamated Trust Plc (GAT) is a special purpose investment vehicle established by the Ghana Government to support selected indigenous banks.

It is primarily set up to raise funds to recapitalise selected indigenous Ghanaian banks that needed assistance to meet the new minimum capital requirements of the Bank of Ghana and to help transform these banks to become more competitive in the industry.

Fred Dzakpata

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