Business News of 2014-05-13

HFC accuses Republic Bank of going against agreed process

The Board of HFC Bank says the process adopted by Republic Bank in its quest to take over the institution is against what was agreed upon, since Republic bank became a major shareholder.
The board's remark was contained in a statement issued and signed by the company's secretary of HFC, Beatrix Ama Amoah.
According to the statement, HFC Bank says their statement is in reaction to claims by the Republic Bank on April 16 that the bank has been granted approval by the Bank of Ghana, which it said came to the bank as a surprise.
The statement added that "following the receipt of the conditional approval letters from the Bank of Ghana, Republic Bank and its agents were written to, to hold on to any planned action while a clarification of the conditions and process was sought to ensure that the approved process was adhered to, particularly as Republic Bank itself had concerns with the communiqué from the Bank of Ghana."
The Board added that while they recognize and appreciate the final decision on Republic Bank's ambitions rest with the shareholders of HFC Bank, it must be emphasized that the process adopted by Republic Bank is against the collaborative theme agreed earlier.
The Board of the bank says it has received legal advice on the steps being taken by Republic Bank and in due course, HFC bank and its advisors will take the appropriate steps to ensure that Republic Bank complies with the applicable legal and regulatory requirements under the Ghanaian Law.
But the Republic Bank has denied breaching the process for taking over HFC. Company secretary Republic Bank, Jacqueline Quamina tells Joy Business all interested parties were informed at every stage of the takeover.
“It is a process. It is not an aggressive action, and it should not be viewed by management as an aggressive.”