‘Increase HFC share price’

The Annual General Meeting (AGM) of HFC Bank (Ghana) Limited comes off today Thursday, April 23, 2015 in Accra with the mandatory takeover offer price of Republic Bank to shareholders expected to feature prominently.

In 2014, when the share price of HFC bank was Ghc1.30 with a premium of 23 percent, the price quoted by Republic Bank was Ghc1.60 and it is still the same.

According to the independent adviser, Boulders Advisors, should the same premium be added to the current share price of Ghc1.30 on the exchange, the price would be Ghc1.85.

Boulders Advisors also estimate a price of Ghc1.83 as a fair price to be offered to shareholders based on the valuation they undertook.

Some shareholders who spoke to this paper said the Ghc1.60 on offer by the Republic Bank as compared to the price of Ghc1.83 proposed by the independent investment adviser which shows a differential of 14 percent is not attractive and therefore not acceptable.

The shareholders have therefore asked the Republic Bank to increase the mandatory takeover offer price of GH¢1.60 to GH¢1.83 as proposed by the independent advisers from their valuation.

Media reports suggest that all directors who are shareholders of the Bank have rejected the Ghc1.60 offer price.

Meanwhile, the Republic Bank, with the support of SSNIT, failed to attend a board meeting scheduled for Wednesday, 22nd April, 2015 to discuss the matter.