Trust takes over Ghana bank

FINANCIAL powerhouse Trust Holdings Ltd (Trust) has acquired a controlling stake in CAL Merchant Bank Ltd of Ghana.

Trust's balance sheet has grown by 294% from $25 billion to $98 billion for the period ending December 31 2002.

The financial institution, whose shares have been steadily rising and are now averaging between $52 and $55 each, yesterday issued a cautionary statement warning shareholders to exercise caution and consult their advisors in their dealings with Trust shares.

Trust said: "Trust Holdings Ltd Board wishes to advise shareholders that negotiations have been concluded for the acquisition of a controlling stake in CAL Merchant Bank Ltd, Ghana.

"The completion of this transaction now awaits final approvals by the relevant authorities at which point a further announcement will be made."

Trust corporate communications manager James Maridadi yesterday said:

"This is in line with our regional expansion programme. The cautionary statement is for shareholders and adheres to Stock Exchange regulations."

The International Finance Corporation, Commonwealth Development Corporation, Pryor, McClendon, Counts & Co, the Africa Growth Fund, Vanguard Assurance Company Ltd and others established CAL Merchant Bank 13 years ago.

For the period ending December 31 2002, the Trust group achieved a pleasing set of results with inflation-adjusted profit after taxation amounting to $5 billion ($6 billion in historical terms).

This amounted to an increase of 274% from last year in nominal terms and was said by analysts to be commendable given the hyperinflationary environment.

The Trust group includes Trust Bank Corporation Ltd, Trustfin (Pvt) Ltd, Trust Corporate Securities (Pvt) Ltd, and Trustfin Insurance Brokers.

During the year 2002 the group successfully concluded a local strategic alliance which culminated in the formation of Tri-Star Insurance Company Ltd, a short-term insurance company.

Trust Holdings Ltd holds a 27,5% stake in this company, which began operations in January this year.

In addition to this development, the Registrar of Financial Institutions granted Trust Bank Corporation approval to operate a discount house, whose operations are expected to begin before the end of the first quarter of this year.

Trust's regional initiative was vigorously pursued last year and the major highlight was the approval by exchange control authorities of the 40% investment in Nicorp Securities Ltd, in Malawi.

This investment was supported by technical agreements with the National Insurance Company Ltd of Malawi (Nico), and various units under Nico.