Business News of 2014-05-01

Republic Bank outlines offer details of HFC Bank to SEC

Republic Bank Limited (RBL), the bank that holds 40 per cent stake in HFC, has submitted details of its offer to shareholders of HFC Bank to the Securities and Exchange Commission (SEC).

The Offeror’s Statement, which spells out its terms and offers to existing shareholders, is in line with the requirements of the SEC Code on Takeovers and Mergers (the Takeover Code).

The move follows the Bank of Ghana’s approval for RBL to make a mandatory offer to shareholders.

A statement issued by RBL in Accra yesterday said it had increased the share price it offered from the initial indicative offer of GH¢1.30 to GH¢1.60 per share.

The revised offer represents a 65 per cent premium over the mandatory price and 28 per cent above the current trading price, the statement said.

“Included in the statement, RBL auditors, Ernst and Young, have provided confirmation that available resources of the bank are sufficient to satisfy full acceptance of the offer,” the Trinidad and Tobago retail banking group said.

The offer is subject to the provisions of the Takeover Code and the Listing Rules of the Ghana Stock Exchange.

Republic Bank Limited, with its 176 years’ experience, is said to be one of the largest and most successful independent commercial banks in the English-speaking Caribbean, with customers cutting across retail-banking, corporate clients and governments throughout the region.

The bank’s considerable experience in retail banking, particularly in mortgages and credit cards, as well as oil and gas financing, is expected to blend profitably with HFC Bank’s expertise, knowledge of the local market and deep-neck in the housing market.

“RBL continues to follow the process as detailed by the SEC; which includes a requirement that HFC Bank advises receipt of the Offeror’s Statement to the SEC within 24 hours,” the statement said.

It added that RBL remained committed to adding value to HFC Bank, including the provision of opportunities, continued professional development of staff and growth and expansion of its products and service offerings.

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