Republic Bank Limited (Republic Bank), headquartered in Trinidad & Tobago has, in line with the Security and Exchanges Commission (SEC) Code on Takeovers and Mergers, announced on the floor of the Ghana Stock Exchange on Thursday 17th April, 2014 that it will make an offer to all shareholders of HFC Bank to increase Republic Bank’s investment in the bank.
Republic Bank currently holds 40% of the shares of HFC Bank Ghana Limited making it the single largest shareholder in HFC Bank. The SEC Code on Takeovers and Mergers requires a shareholder in a listed company whose shareholding reaches over 30% to make an offer to remaining shareholders. The Bank of Ghana has granted Republic Bank approval to make the offer.
Mr. David Dulal-Whiteway, Managing Director of Republic Bank Limited, is happy that Republic Bank had received the green light from the Bank of Ghana to proceed with the mandatory offer to shareholders as required by the SEC Code.
Republic Bank, he said, “is committed to the regulatory process and as such an offer document will be made available to all shareholders within the prescribed timeframe.
Republic Bank will continue to work with the Board, management and staff of HFC Bank to enhance and broaden HFC’s product offerings, in particular, the mortgage offerings, towards growing its base and benefitting the home owning public in Ghana.”
Mr. Dulal-Whiteway emphasized Republic Bank’s philosophy of maintaining strong local participation in all of its overseas investments. “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 local 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: “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 US$40 million in acquiring shares in HFC Bank and its future investment could be in the order of US$100 million.
Republic Bank has also been demonstrating its commitment to HFC Bank by investing in training programmes for staff at the Bank’s head office in Trinidad and Tobago and in particular, has facilitated training of HFC staff in oil and gas and operational risks. Additionally, three Republic Bank staff members are currently on secondment to HFC Bank helping in the development of systems and procedures and new products.”
Republic Bank assures all HFC Bank stakeholders of its long-term commitment to HFC Bank and to contributing to economic growth and development in Ghana through its investment in HFC Bank.