The Securities and Exchange Commission (SEC) says it is currently monitoring the performance of HFC Bank shares on the Ghana Stock Exchange (GSE).
This follows the change in the price share of the stock, from 1 cedi 47 peswes to 1 cedi 60 pesewas, 13 pesewas increase, after only 100 shares were traded on the 11th of June this year on the bourse.
The new price, 1 cedi 60 peswes is the same price being offered by the Republic bank of Trinidad and Tobago to HFC shareholders in its takeover bid of the local bank.
The share price of HFC bank within May and June increased swiftly, it moved from 1 cedi 32 pesewas on May 12, to 1 cedi 40 pesewas on the 29th of May then climbed to 1 cedi 45 pesewas on 30th May, 1 cedi 47 peswes on 9th June then to 1 cedi 60 peswes on June 11.
The Head of EDC Brokers Iddrisu Mahama has called for investigations into the increasing trend in the share price of HFC Bank since the takeover bid.
Other stockbrokers have also described the development as unusual.
Director-General of the Securities and Exchange Commission Adu Anane Antwi speaking to Citi Business News said they are monitoring the development and will make public their findings in due course.
“We haven’t had any concerns expressed to SEC but we ourselves have seen the price of the stock going up, what we have to find out is whether it has moved within the stock exchange rules”, he stated.
Adu Anane Antwi also hinted that SEC was considering some modifications to its Code on Takeovers and Mergers.
There has been growing animosity between the management and board of HFC and the Republic Bank following the latter’s attempts to take over HFC bank.
He said takeover laws must be reinforced to stop undue exploitation without any prejudice to their current investigations.
The takeover has been met with stiff opposition from some shareholders of the bank including the managing director Asare Akufo.
By: Rabiu Alhassan/citifmonline.com/Ghana