Republic Bank makes offer to HFC Bank

Republic Bank Limited, has in line with the Security and Exchange Commission (SEC) Code on Takeovers and Mergers, announced moves to offer to shareholders of HFC Bank to increase Republic Bank investment in the bank.

A statement issued in Accra on Monday and copied to Ghana News Agency by the Republic Bank said it currently holds 40 per cent of shares of HFC Bank Ghana Limited, making it the single largest shareholder.


It said SEC Code on Takeovers and Mergers requires a shareholder in a listed company, whose shareholding reaches more than 30 per cent to make an offer to remaining shareholders, adding that the Bank of Ghana has granted Republic Bank approval to make the offer.


According to the statement, Mr David Dulal-Whiteway, Managing Director of the Republic Bank is happy that the bank had received the green light from the Bank of Ghana to proceed with the mandatory offer to shareholders as required by SEC Code. The statement quoted him as saying: The Republic Bank is committed to the regulatory process and as such an offer document will be made available to all shareholders as required to all shareholders within the prescribed timeframe.


He said the Republic Bank would continue to work with the board, management and staff of HFC Bank to enhance and broaden HFCs product offerings, in particular, the mortgage offerings, towards growing its base and benefiting the home owning public in Ghana.


Mr Dulal-Whiteway emphasised the banks philosophy of maintaining strong local participation in all of its overseas investment.

While we think like a global bank, we always try to act local in our business dealings, ensuring that there is strong local input, strong local content and knowledge and strong influence in decision making. Our investment in HFC Bank Ghana will be no different. We at Republic have the capital, the financial and human resources to add value to HFC, he added.


The Managing Director said: Republic Bank has a proud legacy of service in all markets which it serves and creating value for all stakeholders, including its customers, staff and the people of each of the countries it has entered. Republic Bank has so far invested over $ 40 million in requiring shares in HFC Bank and its future investment could be in order of $ 100 million.


He explained that the Republic Bank has been demonstrating its commitment to HFC Bank by investing in training programes for staff at the banks head office in Trinidad and Tobago and in particular, has facilitated training of HFC staff in oil and gas and operational risks.


He noted that three Republic Bank staff members are currently on secondment to HFC Bank helping in the development of systems and procedures and new product.


He said the bank assures all HFC Bank shareholders of its long-term commitment to HFC bank and to contribute to economic growth and development in Ghana through its investment in HFC Bank.