Ghana Bauxite Company defends acquisition by Ofori-Poku Company Limited
The Ghana Bauxite Company (GBC) has dismissed allegations that Ofori-Poku Company Limited’s (OPCL) factual acquisition of its majority shares was fictitious.
The Corporate Affairs Directorate of GBC described the claims as false, emphasizing that the acquisition was carried out transparently, adhering to all regulatory requirements and due diligence.
The allegations were raised by private legal practitioner Martin Kpebu, who called for a forensic investigation into the sale, citing concerns of possible undervaluation and insider trading.
Mr Kpebu questioned how GBC’s value surged from $12.5 million in 2022 to over $1 billion in less than two years.
However, the GBC Directorate clarified that the government of Ghana, which held 20% shares in GBC, declined to purchase the majority shares in 2010 and 2022, leading to the sale to OPCL.
The Directorate emphasized that OPCL lawfully acquired the 80% stake from BOSAI Minerals, the previous majority shareholder, under the same terms offered to the government of Ghana.
Details
Regarding the valuation of GBC, the Directorate dismisses claims that the company is now valued at around $1 billion, stating that this figure lacks factual basis.
The statement explains that share valuations fluctuate based on various factors, including investments, operational improvements, and market conditions.
The Directorate specifically addresses the claim that GBC’s valuation has surged from $12.5 million in 2022 to over $1 billion, describing it as misleading.
The statement emphasizes that such fluctuations are normal and do not necessarily indicate a dramatic increase in value.
Insider Trading/ Conflict of Interest:
The Directorate also addressed claims that an individual involved in the valuation of GBC later became the Chief Finance Officer of OPCL.
It said the assertion is entirely false because the company operates with a professional management structure, where all key appointments are made based on competence and industry experience.
The company emphasized that it operates with a professional management structure, where all key appointments are made based on competence and industry experience.
This, according to the Directorate, ensures that the company’s operations are guided by merit and expertise, rather than personal interests or relationships.
Regarding the claim that the OPCL owner was a board member of GBC at the time of the acquisition, GBC confirmed this to be true.
However, it emphasized that “membership does not equate to insider trading, especially in a private company like GBC.”
Ownership
GBC stated that OPCL’s ownership is wholly and legally transparent, with the company being registered and having a clear and well-documented ownership structure.
“All operations are publicly verifiable under Ghanaian law,” the statement clarified.
GBC also denied allegations that OPCL secured ownership through a financier of a political party, calling such claims false and misleading.
The acquisition, according to GBC, “was a transparent transaction driven by business strategy, financial viability, and investment potential, adhering to all regulatory requirements without political interference.”
Commitment
GBC reaffirmed its commitment to operational excellence, investment, and value creation for all stakeholders, urging the public to disregard misleading claims.
The company attributed its growth to strategic planning, investment, and management, the statement concluded.
Source: Ghana/otecfmghana.com/Francis Appiah
