Merchant Bank sold

Contrary to impressions created by President John Mahama that he has blocked the controversial sale of Ghanaian-owned Merchant Bank to First Rand Bank of South Africa, the South African company, in its latest financial report, stated categorically that it will start full operations in Ghana from June 2013.

From the unaudited financial report of First Rand Bank available to DAILY GUIDE, plans for the final takeover of Merchant Bank have reached its final stages.

“The Group is awaiting final regulatory approvals relating to its offer for Merchant Bank Ghana (MBG) and expects to conclude this transaction in the second half of the financial year. This will provide an excellent platform for FNB [First National Bank] and RMB [Rand Merchant Bank] to roll out products and services in Ghana,” the multi-national bank stated.

According to First Rand Bank, even before the final approval, its subsidiary, RMB, had already secured juicy deals in the oil and gas and the property industries in Ghana. “RMB is already generating a strong deal pipeline in-country, particularly in the property, and oil and gas sectors,” the report read.

Early 2012, state-owned pension giant, Social Security and National Insurance Trust (SSNIT), the majority shareholder (98 percent) of MBG, and the bank’s management concluded arrangements for 75 percent stake of MBG valued at US$ 91 million to be sold to the South African entity.

But several civil society groups and the opposition New Patriotic Party (NPP) protested against the sale, arguing that there was no basis for it and that the NDC was secretly pushing SSNIT to sell off the controlling stakes in the Ghanaian bank.

Government officials mounted several media platforms to debunk all reports of the sale, even when in August 22, 2012 international newswire, Reuters, reported that First Rand had already paid $91million for a majority stake in Merchant Bank.