CAL Bank shareholder files for injunction on bank’s GHS 600m capital raise

A minority shareholder of CAL Bank has filed for an injunction against the bank’s decision to raise some GHS 600 million in capital.

Cal Bank in a circular noted that it has taken note of the application for an injunction on its capital raise by its shareholder and is liaising with its legal team to respond accordingly.

“The Bank has received a notice of a court action brought by a minority shareholder seeking the grant of an Order of Injunction in respect of the ongoing GHS 600m capital raise. The Bank is liaising with its legal team to respond accordingly.

“The Bank will provide further updates to the market in due course as it works towards resolving the matter,” the Bank noted.

CalBank has turned to its shareholders to raise GHS 600 million to help recapitalize the financial institution.

The bank launched its renounceable rights issue, issuing 1.8 billion shares for 29 pesewas per share.

According to the Bank, proceeds from the offer will also be used to support the bank’s growth strategy and deliver long-term value to its shareholders.

Speaking at the launch of the rights issue which is expected to end on April 26, 2024, the Board Chairman of Cal Bank, Joe Mensah, said the bank is still being affected by the domestic debt exchange programme, hence the need to raise more funds.

“We are hoping our existing shareholders will exercise their rights and the message I am getting is that most of our shareholders are excited and ready to do it. Some individual shareholders have expressed concern due to the domestic debt exchange programme, but we are determined to ensure that CAL Bank remains a Ghanaian bank”, he said.

“I mentioned that there are two issues here which is the domestic debt exchange programme and some loan impairment, so we are working around it to support the bank “he added.

Source: Norvanreports