Business News of 2014-04-24

SSNIT, COCOBOD to sell shares in HFC bank?

Citi Business News has gathered state pension fund manager SSNIT and the regulator of the cocoa industry COCOBOD are likely to sell their shares in HFC bank to Republic bank.
SSNIT currently owns about 26 percent of shares in the bank while COCOBOD has 5.57 percent.
If the sale goes ahead Republic bank which is currently the single largest shareholder of the bank with 40 percent shares will now have over 70 percent shares.
Republic bank is offering 1 cedi 30 peswes per share.
COCOBODShares of COCOBOD and SSNIT will fetch the two institutions over 40 million dollars.
Sources familiar with the matter also tell Citi Business News that the founding Managing Director of HFC bank Stephanie Baeta-Ansah may also sell her shares in the bank.
Stephanie Baeta-Ansah currently owns 0.13 percent shares in the bank.
Republic Bank in line with the Security and Exchanges Commission (SEC) Code on Takeovers and Mergers announced on the floor of the Ghana Stock Exchange on Thursday 17th April, 2014 that it will make an offer to all shareholders of HFC Bank to increase its investment in the bank.
The SEC Code on Takeovers and Mergers requires a shareholder in a listed company whose shareholding reaches over 30% to make an offer to remaining shareholders.
Citi Business News has gathered the Bank of Ghana has also granted Republic Bank approval to make the offer.
But the move has been met with some opposition from some shareholders of the bank including the managing director of the bank Asare Akuffo who owns 0.3 percent shares.
This makes him the second largest individual shareholder and 11 largest shareholders in the bank.
Meanwhile the bank is expected to hold an AGM tomorrow with the takeover expected to be the main agenda for the meeting.
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