Nduom Blames Botched GN Bank Merger On Breach Of Confidentiality

CEO of GN Group of companies, Dr Papa Kwesi Nduom, has stated that the reason for pulling out of an initial merger that was supposed to take place between GN Bank, Sahel Sahara and Premium Bank was due to lack of confidentiality from one of the banks.

In July, reports suggested that the three banks were planning to merge to meet the 400 million cedis minimum capital requirement.

But shortly after the announcement, Sahel Sahara was again reported to be planning a merger with OmniBank.

In an address to the media, Dr. Papa Kwesi Nduom stated that one of the parties rushed to announce the deal without the consent of GN Bank raising issues of confidentiality.

“We were seeking approval from the Bank of Ghana for a no objection to continue to talk, we got the no objection and they even gave us a long merger requirement that we should keep”, he stated.

He added, “So we were going to work on all those things and then I traveled, so when I left one of the banks put out information that we were merging and that is not right because we were still talking”.

Meanwhile, he stated that GN bank is putting plans together with other banks to raise a minimum capital of six hundred million cedis which will exceed the minimum capital requirement of four hundred million cedis.

“The shareholders of the bank are still raising funds with the hope to get to a minimum of six hundred million Ghana cedis by the end of this year”.

Dr. Ndoum explained further that, “So we want to exceed the minimum so that should anything happen nobody can say that you did not meet the minimum requirement”.

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By: Anita Arthur/citibusinessnews.com/Ghana