Shareholders of HFC bank who want to sell their shares in the bank to Republic bank will make some extra cash than earlier anticipated.
Republic bank is now offering more cash for a share that is sold to them.
Republic bank initially made an offer of 1 cedi 30 peswes per share.
But the bank yesterday April 29th increased its offer to 1 cedi 60 peswes per share.
The revised offer is at a premium of 65% over the mandatory price and 28% above the current trading price.
HFC is currently trading at 1 cedi 25 peswes on the Ghana Stock Exchange
Meanwhile the bank has also submitted its Offeror Statement to HFC Bank and the Securities and Exchange Commission (SEC) detailing its offer to all shareholders of HFC Bank.
This is in line with the requirements of the SEC Code on Takeovers and Mergers (the Takeover Code) and follows the Bank of Ghana’s approval for Republic bank to make a mandatory offer to shareholders and its announcement on 16th April, 2014.
The offer is subject at all times to the provisions of the Takeover Code and the Listing Rules of the Ghana Stock Exchange.
Republic bank in a statement said it will continue to follow the process as detailed by the SEC; which includes a requirement that HFC Bank advice receipt of the Offeror’s Statement to the SEC within 24 hours.
Republic bank started making news some weeks back after it announced moves to take over HFC in line with SEC’s Code on Takeovers and Mergers (the Takeover Code).
The rule requires that the largest shareholder make an offer to all shareholders.
The move has been heavily criticised by some shareholders of HFC bank including the managing director of the bank Asare Akuffo who want the bank’s Ghanaian identity among others maintained.
By: Vivian Kai Mensah/citifmonline.com/Ghana