Bayport and CFC Savings and Loans seek merger approval

Bayport Financial Services Plc is awaiting approval from the Bank of Ghana to merge its operations with sister company CFC Savings and Loans Limited.

Mr Kofi Adu-Mensah, the Managing Director of Bayport Ghana Limited, who announced this, said the proposed merger would lead to a bigger entity.

Speaking at the Facts Behind the Figures programme of the Ghana Stock Exchange to discuss the company’s operations with brokers, investors, media and shareholders, Mr Adu-Mensah said the plan was to consolidate both businesses via a share swap instead of having two subsidiaries in Ghana in the same line of business.

Bayport Management Limited (BML) is the majority shareholder in both Bayport Ghana and CFC Savings and Loans Limited (CFC).

“A combined business will allow the merged entity to provide mass retail modern financial services and products to both the informal and formal sectors covering both micro and small enterprises in Ghana,” Mr Adu-Mensah said.

He said Bayport Ghana, the surviving entity from the business consolidation, would seek a change in license from Bank of Ghana from a Finance House to a Savings & Loans Company in order to offer all the products currently offered by CFC.

The products include current and savings accounts, transactional services on GHIPSS platform, personal loans, and bancassurance products to the formal and informal sectors in Ghana.

The merged entity will be a savings and loans company and will leverage on business lines already existing at BFSG and CFC and further enhance sub-product range, channels and capabilities.

Mr Adu-Mensah said an application had been made to the Bank of Ghana for the approval of the merger and conversion to a savings and loans company, adding that all merger approvals were expected by end of December 2016 and financial and operational integration would begin from January 1, 2017.

He said Fidelity Bank Limited, as Note Trustee, had also granted their consent for the merger and change to a savings and loans company while the Securities and Exchange Commission had also been notified of the merger.

Bayport Ghana was established in 2003 and now boasts of a client base of some 103, 051 individuals.

The company has 32 permanent branches in all regions in mainland Ghana from Accra up to Wa and has 1,169 employees including sales agents.

At as September this year loans disbursed totalled GH¢270.5 million, while assets rose to GH¢354.9 million.

The payroll portfolio accounts for about 90 per cent of the loans, said the Chief Finance Officer of Bayport, Mr Gabby Quartey.

The company has also issued GH¢128.7 million out of its GH¢200 million note programme aimed to help generate funds locally to support its growth which would enable it to deliver on its promise to customers.