Arrangements for the GH¢79.5 million Rights Issue (“the Offer”) by Ecobank Ghana Limited (“EBG” or “the Company”), which was approved by its shareholders at the Company’s last Annual General Meeting held on March 26, 2009, have now been concluded. Pursuant to Section 34 of the Companies Code 1963 (Act 179) and the Ghana Stock Exchange Listing Rules, the Register of Members of EBG will be closed to the general public from Thursday, September 17 to Friday, September 18, 2009 (both dates inclusive).
The ex-rights and qualifying dates for the offer have been set as Monday, September 14, 2009 and Wednesday, September 16, 2009 respectively. Only shareholders on the Register of Members of EBG at the close of business on Wednesday, September 16, 2009 will therefore be entitled to exercise their Rights under the Offer.
Under the Offer, 28,597,122 shares are available to EBG shareholders at GH¢2.78 per share in the ratio of 1 new share for every 7 existing shares held as at Wednesday, September 16, 2009. The Offer is therefore at a discount of 10% to the September 3, 2009 price of EBG shares on the Ghana Stock Exchange (GSE).
Applications will be invited under this Offer from investors who, subject to the Rules of the Ghana Stock Exchange, the terms of the Offer and other applicable laws, may be allotted such shares as are not subscribed for by qualifying shareholders or as may be duly renounced in their favour.
Approval for the Rights Issue Circular was obtained from the Securities and Exchange Commission (SEC) on September 3, 2009 and for the listing of the new shares from the GSE on August 24, 2009. The Offer is expected to open on October 2, 2009 and close on October 20, 2009. IC Securities (Ghana) Limited and EDC Stockbrokers Limited are Lead Manager and Co-lead Manager respectively for the Offer.
EBG seeks to undertake this Offer to raise capital to meet additional capital requirements, fund its branch expansion project and implement its 5-year strategic plan of increasing its market share of customer deposits, through increased coverage, proximity and quality of services to clients.
The Offer Circular will shortly be sent to qualifying shareholders.
Issued by:
Ecobank Ghana Limited