SSNIT To Offload Shares In HFC Bank

Ernest Thompson, SSNIT Director General
State Pension fund manager Social Security and National Insurance Trust (SSNIT) is likely to sell its shares in HFC Bank to Republic Bank.

Ongoing negotiations between the two parties on the sale are said to be far advanced.

Persons familiar with the matter say the board of HFC bank met on 19th November, 2014 to discuss the development and other matters arising.

SSNIT currently owns about 26 percent of shares in the bank. If the sale goes ahead Republic Bank which is currently the single largest shareholder of the bank with 40 percent shares will now have over 65 percent shares. HFC and Republic Bank early this year accused each other of breaching the agreement reached on Republic Bank's takeover of HFC.

Republic Bank earlier denied accusations made by HFC Bank that it did not go through the right legal process in its takeover bid of the bank.

Republic Bank also dismissed reports that it failed to go by the deal agreed between it and HFC bank on the takeover.

HFC bank subsequently dragged Republic Bank to court. The case is expected to resume on 27th November, 2014.

Meanwhile, reports also indicate two members of the board are not likely to have their tenure which ends this year renewed.

 
 
- citifmonline