Republic bank has officially notified HFC bank over moves to take over the bank.
[contextly_sidebar id=”6bZfPqV3w9xBmFAfMfojjFE92anHQa7E”]The notification, Citi Business News has learnt, was made yesterday March, 23rd, 2015.
The Securities and Exchange Commission (SEC) gave Republic Bank the green light to go-ahead to make the move to all shareholders of the HFC Bank under the ‘Takeover Code’ of the Securities and Exchange Commission (SEC) last week.
An earlier approval for the offer was put on hold last year after management of HFC, initiated an action in the High Court to prevent the start of the mandatory takeover offer process.
Two other court cases initiated by some shareholders of HFC also sought to restrain Republic bank from making the mandatory takeover offer.
In both cases however the suit was thrown out by the courts.
Director General of SEC Dr Adu Annane Antwi told Citi Business News all outstanding issues on the mandatory takeover offer have now been resolved.
‘ Republic Bank has been granted the approval to go ahead with the mandatory takeover offer and let me emphasis on the offer word because without the offer it will sound like they are by law to take over the company but they are by law asked to do a takeover offer. So it is shareholders who will now agree or disagree to the takeover but now the offer will come from Republic Bank which is mandated to do that and the approval has been given to them to make that offer to existing shareholders up to 75% of the shareholdings of HFC Bank’. He stressed.
Republic bank is offering shareholders GHS1.60 per share.
According to Republic Bank the figure ‘represents a premium of 18% above the average price of HFC Bank shares for the year to date and 20% above the Friday March 20, 2015 closing price’.
HFC stocks were trading at 1 cedi 30 pesewas a share yesterday, March 23, 2015.
Robert Le Hunte, Director of African Operations for RBL, commenting on the approval said that “I am extremely happy that we have arrived at this stage of the MTO process whereby shareholders who are the owners of HFC Bank will finally be able to make a decision on their shareholdings. This is indeed a momentous occasion for the Ghana capital market.”
“Our key focus is to work with our partners, shareholders and management and staff of HFC Bank to add value to the operations of HFC and contribute to economic growth and development in Ghana. We remain committed to achieving our objective”, Mr Le Hunte said.
By: Vivian Kai Lokko/citifmonline.com/Ghana
