GN, Premium and Heritage in merger talks

GN Bank is currently in talks to merge with Premium and Heritage Bank, Joy Business sources reveal.

The sources say a formal communication about the proposed merger was sent to the Bank of Ghana last Friday for their consideration.

A favourable response by the Bank of Ghana would pave the way for the three banks to kick-start the process to merge their operations.

Background

GN bank had initially planned to merge with Premium and Sahel, however, Sahel later got out of the planned marriage and instead joined forces with Omni Bank.

Joy Business understands the mergers are aimed at helping these banks meet the new capital requirement of 400 million Ghana cedis.

GN Bank told Joy Business a while ago that it was looking at raising the funds on its own to recapitalise.

However, it is not clear what the proposal to merge with the two other banks would mean for the bank in terms of meeting the new capital requirement.

When would this merger be completed?

A letter cited by Joy Business shows that if the central bank does not object to the merger, it could be completed by next month. It is, however, not clear what name these three banks would adopt for the merged entity.

Industry developments

These three banks are starting the process at the time when the central bank has given a green light for Sahel and Omni Bank to merge.

Analysts have predicted that there could be more mergers in the coming months as some of the banks struggle to meet the new capital requirement.