BancABC to clear way for P356m rights issue

The BSE-listed bank plans to raise the funds through an offer of additional shares to its existing shareholders, a process known as a rights issue.

However, the issue is expected to result in substantial shareholder and proposed underwriter, African Development Corporation (ADC), increasing its holding in BancABC above 35 percent from its current 23 percent. According to the BSE regulations, such a development would require ADC to make an offer to buy out all other shareholders in the banking group at the price the shares in the rights issue were offered.