Supreme Court dismisses suit challenging Dannex Ayrton Starwin merger

The Supreme Court has unanimously dismissed an application to quash an order of the High Court, which confirmed the merger of Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited.

In November last year, the High Court in Accra granted an Order confirming the merger of the aforementioned companies to form Dannex Ayrton Starwin Plc (DAS Pharma), a public company listed on the Ghana Stock Exchange.

However, the Confirmation Order was challenged both at the High Court and at the Supreme Court.

The confirmation order was challenged for several reasons including the fact of an appeal pending at the Court of Appeal.

The appeal was seeking to have the rights issue conducted by Starwin Products Limited in 2013 declared null and void.

It will be recalled that it was by the said rights issue that Dannex Limited became a majority shareholder of Starwin Products Limited paving the way for the merger.

The action at the High Court and subsequently the Supreme Court was mounted by a number of shareholders including Mirfield Properties Limited, Dr. Albert G Boohene, Enviro Solutions Limited, James Akpaloo and Samuel Kwasi Adjei.

However, by a unanimous decision of the Supreme Court, the Application for Certiorari was dismissed outright.

In previous proceedings, the Court of Appeal, on 13th March 2020, and by a unanimous decision dismissed appeals filed by Dr. Albert G. Boohene and Mirfield Properties Limited challenging the rights issue conducted by Starwin Products Limited in 2013.

The two judgments, therefore, preserve both the rights issue of Starwin Products Limited as well as the subsequent merger between Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited.