The Ghana Bauxite Company Limited (GBCL) has denied being bandied about regarding its acquisition by Ofori-Poku Company Limited (OPCL), describing the allegations as misleading and inaccurate.
The company clarified that the acquisition of its 80% stake by OPCL was conducted transparently and in full compliance with regulatory requirements.
In a press release, GBC emphasized its commitment to transparency and ethical business practices, while providing clarity on the acquisition process and addressing concerns raised by critics.
The company disclosed that in 2010, the Government of Ghana (GoG), which holds a 20% stake in GBC, declined to acquire the shares from Rio Tinto, leading to their sale to BOSAI Minerals China.
Similarly, in 2022, the government chose not to exercise its right of first refusal, allowing OPCL to lawfully acquire the shares on the same terms offered to the government.
“The acquisition was carried out in a transparent manner, adhering to all legal and regulatory standards. The government had every opportunity to acquire the shares but chose not to,” the release stated.
GBC also refuted claims that the company was undervalued during the acquisition process. Critics had alleged that GBC was valued at $12.5 million in 2022 but is now worth over $1 billion.
Lawyer Martin Kpebu, in a Facebook post, has called for a forensic probe into the sale. He wrote: “Charlie, GoG must conduct a forensic into the sale of Ghana Bauxite Co. Ltd (GBC) to Ofori-Poku (OPCL). The shares were valued $12.5 million in 2022 and GoG which owned 20% of the shares was given the right of first refusal to acquire the remaining 80% of the shares. GoG (per Charles Adu Boahene) refused the offer on the basis that there was no value for money etc.
- But in less than 2 years, GBC is now valued at over $ 1 billion dollars! Yea you heard me right. How could that happen?
- The man who did the valuation at $12.5 million is now the CFO of the buyer (OPCL). 4. Is it true OPCL is owned by a big financier of the NPP? 5. The owner of OPCL was a board member of GBC at the time of the sale of GBC to OPCL… Insider trading? More to follow. Guys let’s sit up. This contract must be investigated. No way.”
The company, however, dismissed these claims as baseless, explaining that valuations fluctuate based on investments, operational improvements, and market conditions.
“Since acquiring GBC, OPCL has made significant financial investments and implemented strategic interventions that have enhanced efficiency, increased output, and strengthened the company’s market position. These improvements have naturally impacted the current valuation,” the release stated.
Addressing allegations of conflict of interest, GBC denied claims that an individual involved in the valuation process later became the Chief Financial Officer (CFO) of OPCL. The company described the assertion as false and emphasized that all key appointments are based on competence and industry experience.
“Any suggestion of unethical behaviour is unfounded and misleading. GBC operates with a professional management structure, and all appointments are made on merit,” the release added.
GBC also defended OPCL’s ownership structure, describing it as transparent and publicly verifiable under Ghanaian law. The company dismissed claims that OPCL is secretly owned by a financier of a political party, calling such allegations false and intended to create unnecessary suspicion.
“OPCL is a legally registered company with a clear ownership structure. The acquisition was a purely commercial transaction, driven by business strategy and financial viability. There was no political influence or interference at any stage,” the release stated.
Responding to claims of insider trading, GBC acknowledged that OPCL’s owner was a board member of GBC at the time of acquisition but stressed that this did not constitute insider trading. The company explained that insider trading laws apply to publicly traded companies, not private transactions like the acquisition of GBC.
“Board membership does not equate to insider trading. It is standard corporate practice for shareholders, including the government, to have access to relevant financial and operational information. There was no impropriety in this transaction,” the release emphasized.
Ghana Bauxite Company Limited reiterated its commitment to operational excellence, investment, and value creation for all stakeholders and urged the public to disregard misleading claims and trust in its strategic planning and sound management.
