GBC Was Legally Sold …No Insider Trading, Conflict Of Interest –Management Clarifies

The management of the Ghana Bauxite Company Limited (GBC) has described as misleading and inaccurate claims over the sale of the company to Ofori-Poku Company Limited (OPCL).

In a post on his Facebook page, Martin Kpebu Esq. expressed his suspicion that the sale of GBC smacked off a shady deal.

The legal brain claimed that GBC, valued at $12.5 million in 2022 is now valued at over $1 billion and suggested that the Government of Ghana must conduct a forensic investigation into the sale of the company to Ofori-Poku (OPCL).

The GBC has, however, debunked the assertions by its accusers and urged the public to disregard the misleading claims and thus GBC’s growth is a result of strategic planning, investment and sound management.

The company said GBC remains focused on operational excellence, investment, and value creation for all stakeholders and assured the public of its commitment to transparency and ethical business practices.

Setting the records straight, the management emphasised that the sale of GBC, followed due processing and having adhered to all regulatory requirements and due diligence standards stressing that the acquisition of GBC by OPCL was carried out in a transparent manner.

“In 2010, the Government of Ghana, as a 20% shareholder, had the opportunity to acquire the 80% shares in GBC from Rio Tinto, but declined, leading to the sale of shares to BOSAI Minerals China,” it was explained.

The company further said consistent with this earlier position, the government in 2022 once again chose not to exercise its right of first refusal, after which OPCL lawfully acquired the 80% stake from BOSAI Minerals on the same terms as offered to government, ensuring business continuity and commitment to the company’s long-term growth and development.

GBC said the claim that was it valued at $12.5 million in 2022 and is now worth over $1 billion is misleading and lacks factual basis.

According to the GBC management, the company valuations fluctuate based on investment, operational improvements, and market conditions stressing that OPCL has since made significant financial investment and strategic interventions that have enhanced efficiency, increased output, and strengthened the company’s market position.

These improvements, GBC said, have naturally had an impact on the current valuation.

The company further stated categorically that there was “No Conflict of Interest in the Valuation Process” and that the assertion that an individual who was involved in the valuation later became the CFO of OPCL is false.

GBC, under OPCL’s leadership, operates with a professional management structure, and all key appointments are made based on competence and industry experience and indicated that any attempt to suggest unethical behavior is unfounded and misleading.

It was further stated that the ownership and governance of OPCL are transparent adding that OPCL is a legally registered company with a clear and well-documented ownership structure that is publicly verifiable under Ghanaian law.

GBC said any suggestion that it is secretly owned by a financier of a political party is false, misleading and intended to create unnecessary suspicion in the minds of the public and explained that the acquisition “was purely a commercial transaction, driven by business strategy, financial viability and investment potential” which explains that the process adhered to all regulatory requirements and there was no political influence or interference at any stage.

GBC also stated that there was No Insider Trading or Impropriety and that the claim that OPCL’s owner was a board member of GBC at the time of acquisition is factually correct, but the suggestion of insider trading is entirely misleading.

“Board membership does not equate to insider trading, particularly in a private company like GBC.

“It is standard corporate practice for shareholders-including the government of Ghana, which was also represented on the board – to have access to relevant financial and operational information.”

Insider trading laws apply to publicly traded companies, not private transactions such as this one.

In the face of the defence, GBC has affirmed that there was no insider trading, conflict of interest and impropriety and that the transaction was a sound commercial business,lawful and commercial sound business transaction.

“Any attempt to suggest otherwise is uninformed and misleading,” GBC management stated.

The post GBC Was Legally Sold …No Insider Trading, Conflict Of Interest –Management Clarifies appeared first on The Ghanaian Chronicle.

Read Full Story