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31.05.2005 Business & Finance

Blue Mont blames media for IPO fiasco

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Blue Mont Ghana says it will not pursue its dream of listing on the Ghana Stock Exchange and is taking steps to pay refunds to investors who have already bought into its IPO.

This follows the cancellation of the offer by the Securities and Exchange Commission or SEC for what it termed the inability of Blue Mont to adequately address all the contentious issues raised by some investment analysts.

The issues had bothered on the proper valuation of the company and its relations with its parent company Blue Mont UK among others that generally questioned the integrity of the prospectus.

Following this, the SEC requested Blue Mont to make further disclosures in a supplementary prospectus.

Executive Chairman of Blue Mont, Ganesh Venkatraman told journalists in Accra that the company did not find it relevant to release the kind of information requested by the SEC since they mostly related to Blue Mont UK and not the local company.

But while Mr. Venkatraman holds no grudges against the SEC, he lashed at a section of the media whom he said had carried out a malicious and vindictive campaign against the IPO on the back of what he claimed were mere allegations against him and his company.

Mr. Venkatraman acknowledged that the IPO which was to raise some 22 billion cedis for expansion is effectively dead.

However he told JOY Business Report that Blue Mont Ghana will not die with the IPO.

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