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AGC merger Ghana seeks extension of time
Accra (Greater Accra) 18 Oct. ’99
The government on Friday sought a one-month extension to a standstill agreement between Ashanti Goldfields Company (AGC)Limited and 17 financial institutions with which the company has hedging arrangements.
A statement issued in Accra by the British High Commission, said the time extension is to allow the government and the company adequate opportunity to evaluate various options aimed at improving AGC's financial position, including the offer from Lonmin for a merger..
It said the government's request was made in the course of meetings it held with the group hedge bank counter-parties, the chairman and the chief executive of Lonmin, and another group of banks that have provided AGC a 270 million-dollar revolving credit facility.
Commenting on the progress of the discussion, Alhaji Mahama Iddrisu, who is leading Ghana’s delegation, said " we have tried to impress on AGC's creditors the importance of the company to Ghana's economy and the determination of the government to do everything possible to save Ashanti".
The statement said in order for AGC's prospects to improve, the company needs greater understanding and support from its creditors, since it has very strong fundamentals and is only facing a short-term liquidity crisis."
On Lonmin's offer to merge with Ashanti, Alhaji Iddrisu stated that the government does not have enough information on the offer.
"We expect to receive more information on the offer today, after a Lonmin Board meeting"
The statement said Alhaji Iddrisu who is the Presidential Adviser on Governmental Affairs, noted that the government has taken no particular position on the offer.
He stressed that while considering the Lonmin offer, the government is keen to consider other alternative proposals and partners.
"At this point, the government is interested in finding out as much information as possible regarding Ashanti's financial situation, the views of
its creditors, the opinions of Ashanti's investment advisers, and the merits and demerits of various options that Ashanti and the government may choose", he said.
Alhaji Iddrisu's delegation includes Mr Ekwow Spio-Garbrah, Minister of Education, who is also responsible for Mines and Energy, Mr James Aggrey-Orleans, Ghana's High Commissioner to the United Kingdom and a team of seven investment advisers from CAL Merchant Bank and Databank (Ghana) Limited.
The statement said the team had received a briefing on Ashanti's hedging activities and some of the strategic options facing it from the staff of Goldman Sachs, advisers to Ashanti.
According to Mr Kofi Bucknor, who is co-ordinating the work of the investment advisers, they expect to provide a detailed briefing to the
government in Accra this week to enable the government to take a decision that is in the best interest of Ghana and Ashanti's shareholders.
He said that the delegation's interactions with the various parties had helped to send a strong signal to the markets about Ghana's commitment to Ashanti.
"I believe that both Lonmin and the financial institutions have gained a better understanding about Ghana government's position on the challenges facing Ashanti. We received quite a favourable response from the groups we met", Mr Bucknor added.
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Accra (Greater Accra), 18th October 99
The first ever Personal Finance Show aimed at exposing Ghanaians to financial products and investment avenues ended in Accra on Saturday.
Exhibitors commended the organisers for a job well done, saying this was the first time a show directed at a particular target had hit its mark.
Speaking to at the close of the show, some exhibitors, including officials of the Ghana Stock Exchange, CDH Finance Holding Limited and the State Insurance Company, said visitors to the show dubbed "The Personal Finance Show '99" knew why they had come and were genuinely interested in the products on display.
These included pension and insurance schemes, tax plans, brokerage, banking and mortgage financing services.
However, contrary to the view of exhibitors who advocated improvement on promotion in the next show for a higher patronage, the organisers, AITEC Ghana, an African Information Technology (IT) Exhibitors and Conference organisers, said the patronage was quite impressive.
Nii Armah Addy, Sales Representative, said the show was able to attract the targeted 2,000 visitors with many of them saying that it has exposed them to numerous investment opportunities they did not know existed.
For example, some said they only knew of corporate investments but they now know about self or personal fund development and other loan schemes that are available in the banks, insurance companies and other non-bank financial institutions.
Eleven companies participated in the show, which was targeted at the middle and upper class income earners with higher levels of disposable income.
GRi