Agyapa IPO suspended

Government has suspended the proposed launch of an Initial Public Offer (IPO) of the Agyapa Mineral Royalties Limited.

Agyapa IPO suspended

Agyapa IPO suspended
Charles Adu Boahene

Government has suspended the proposed launch of an Initial Public Offer (IPO) of the Agyapa Mineral Royalties Limited.

The Finance Ministry has explained that the move is to allow the Office of the Special Prosecutor ample time to conduct its corruption risk assessment regarding the transaction.

The decision to halt the tactic comes on the rear of calls by the OSP for more information on the deal. This may inform the way forward on its benefits to Ghana.

The Special Prosecutor had in an earlier letter to the Finance Ministry. The letter indicated that information it had been given was inadequate.

“The information and documents you supplied concerned mainly the processes for. Thus the appointment of the Transaction Advisors which matches to the idea of any corruption risk assessment.”

It further admonished the Ministry “to abide by the results of the corruption risk assessment it’s undertaking on the transaction before moving to the launching of the IPO transaction.”

In the newest twist, the Ministry of Finance has given in to the OSP’s demands.

“The Ministry doesn’t shall proceed with the IPO before the results of the corruption risk assessment by your Office.

Agyapa IPO suspended

A letter signed by the Deputy minister of finance. Charles Adu Boahene says the move was reached before the OSP’s request for further and better particulars regarding the arrangement.

“This was before your office’s request for information and production of document,” the letter read.

“Kindly note that the document was ready about two months ago by the transaction advisors to update the Minister on the progress of the transaction. The timing expressed within the document was the intention of the transaction advisors at that time”. The Deputy minister of finance said. He added that “to launch the IPO by the highest of September 2020 to be completed by the highest of the year,”

The letter stated the Ministry’s intention to proceed with the deal between Agyapa Mineral Royalties Limiter and government within the remits of the OSP’s assessment.

“The international investor community has been closely monitoring the results of this state of the transaction. It would, therefore, be detrimental to proceed without receiving the specified approvals and green light from your Office,” it said.

Government says the new agreement is predicted to enable the country to use a Special Purpose Vehicle (SPV), Agyapa Royalties Limited. This will help to secure about $1 billion to finance infrastructural projects.

Background

The Minority in Parliament had necessitated the withdrawal of the contract with Agyapa Mineral Royalties Limited over what it believes is an opaque attempt by the NPP-led administration to syphon public funds for his or her parochial interest.

The Special Prosecutor, in September, began an enquiry into the controversial Agyapa Mineral Royalties deal. He wrote officially to Parliament requesting for information on the deal.

Under the agreement, Agyapa Mineral Royalties Limited has been incorporated in Jersey near UK to receive and manage royalties from 16 gold mining leases over subsequent 15 years approximately.

In exchange, the firm will list on the London and Ghana Stock Exchanges later this year. It lift a minimum of $500 million for state to require an edge in infrastructure, health and education. The listing will allow private people to buy for 49% stake within the firm.

Agyapa IPO suspended

Source: myjoyonline

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