Republic makes move on Ghana bank
REPUBLIC BANK LIMITED has announced its acquisition of 68.85 million shares in HFC Bank Ghana, making it the single largest shareholder.
Its 32.02 per cent shareholding is above a threshold that would normally trigger a formal takeover bid under the regulatory requirements of the West African nation.
But Republic Bank’s managing director, David Dulal-Whiteway, said that the Trinidad-based bank had made an application to the Ghana Securities and Exchange Commission for an exemption from that rule.
He said that should the waiver request not be granted, Republic Bank would, subject to regulatory approvals, be obliged to make a mandatory offer to all shareholders of HFC Bank Ghana to purchase their shares, in keeping with the Code On Takeovers And Mergers.
The latest share purchase was made earlier this month on the Ghana Stock Exchange, with approval from the country’s Central Bank. The shares were previously held by Aureos Africa Fund LLC.
Republic Bank had earlier held an 8.79 per cent shareholding, acquired in December last year.
Dulal-Whiteway said that Republic Bank was excited about the opportunities that this investment in HFC Bank Ghana would bring to its clients in the Caribbean, who are desirous of doing business in the African continent.
He was equally excited, he said, at the value that the bank would add to the operations at HFC Bank, and said that Republic would soon be working closely with HFC’s executive management team on particular business growth areas already identified.
He further revealed that Robert Le Hunte, general manager for corporate and investment banking at Republic Bank Limited, had been appointed to the HFC Bank board of directors.
Republic Bank Limited is an independent Caribbean bank with a history that spans 176 years of service. It has its roots in the Colonial Bank which started business in Trinidad and Tobago in 1837, later becoming Barclays Bank Trinidad and Tobago Limited and eventually Republic Bank Limited.
Republic Bank boasts a current asset base of US$8.6 billion and profit after taxation of US$88.09 million.
HFC Bank (Ghana) was licensed as a commercial bank in 2003, and today operates 26 branches throughout Ghana, providing a wide range of banking services.
HFC Bank has an asset base of US$301 million and profit after taxation of US$7.7 million based on its last published financials. (GE/PR)