The Teachers Fund has hinted to Citi Business News it is likely to acquire some shares in the Agricultural Development Bank (ADB) should it go public by the end of the year.
ADB has announced it intends to list on the Ghana Stock Exchange (GSE) by year end.
A successful listing of ADB, on the Ghana Stock Exchange will see the 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 a move the Managing Director of ADB bank Stephen Kpordzih warns, will only go to destroy the local niche of the bank.
But speaking to Citi Business News the General Manager of the Teacher’s Fund Foster Buabeng 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’s portfolio, we have listed securities as part of it, what we do is that any company that we want to invest in, we look at the fundamentals and if its good we invest. So as ADB makes 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.”
Forster Buabeng also tells Citi Business News 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.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana