Security and Exchanges Commission cautions Republic Bank

The Securities and Exchange Commission has accused the Republic Bank Limited of contravening the Commission’s Code on Takeovers and Mergers in their bid to acquire controlling interest in HFC Bank.

A letter from the Director General of the Commission, Mr Adu Antwi to New World Securities, who act for the Republic Bank on their stocks, described the changes made by Republic Bank in their Tender Offer Price published in the media recently as “irregular”.

Republic Bank gave an offer price to the Commission in April but changed the price that was published in the media without the written consent of the Securities and Exchange Commission as required by the Code on Takeovers and Mergers.

Mr Adu Antwi strongly advised the Republic Bank to ensure that it follows the prescribed rules under the Securities and Exchange Commission Code in dealing with shareholders of HFC Bank.

The Republic Bank of Trinidad and Tobago has been engaged in what appears to be a hostile takeover bid with the management of HFC Bank for the control of the Ghanaian bank. Yesterday the Board of Directors of HFC Bank issued a statement expressing surprise at some actions of the Republic Bank in their bid to acquire controlling interest in HFC Bank but Republic Bank disputed the claim saying its actions have been proper.