Republic Bank Entices HFC Shareholders

Majority shareholder of HFC Bank, Republic Bank of Trinidad & Tobago, has urged shareholders of HFC to take advantage of its share offer.

Republic Bank of Trinidad and Tobago, which holds about 42 percent of shares in HFC, is currently offering shareholders of the bank GHS1.60 per share as part of the mandatory takeover codes of the Securities and Exchange Commission (SEC).

An earlier approval for the offer was put on hold last year after management of HFC initiated an action in the high court to prevent the start of the mandatory takeover offer process.

Group General Counsel and Corporate Secretary of the Republic Bank of Trinidad and Tobago Jacqueline Quamina implored shareholders to look at the facts and take advantage of the offer which was the best they could get on the market currently.

'Republic Bank is entering into a very important part of the process which is the culminating part we have been involved in here in Ghana and it's up to each shareholder to come to a decision on what they want to do with their HFC shares'.

According to Jacqueline Quamina, the offer is a good one.

'These opportunities don't come round every day; this is where the decision gets to be made. Everybody who owns a share in HFC Bank has to decide whether they want to welcome Republic Bank or whether the situation remains the same.'

According to Republic Bank, the figure 'represents a premium of 18 percent above the average price of HFC Bank shares for the year to date. The share offer will end on May 7, 2015.

Republic Bank in 2012 purchased 8.79 percent shares in HFC Bank Ghana when HFC floated more than 112.4 million ordinary shares under a private placement.

The bank later increased its stake to 32.02 percent after it bought 23.23 percent additional shares from Aureos Africa Fund LLC.

In June 2013, Republic Bank further acquired more than 68.85 million ordinary shares at no par value in HFC Bank Ghana Limited from Aureos Africa Fund LLC.

It also purchased 7.98 percent additional shares in 2013 from Union Bank of Nigeria, increasing its shareholding in the bank.

Meanwhile, Executive Director of Business Development of HFC Bank, Charles Ofori-Acquah, is said to have resigned.

He is reported to have tendered in his resignation on Wednesday.

It is still unclear what led to his resignation.
- Citifmonline