It appears rising tension between HFC bank and its single largest shareholder Republic bank over the takeover of the bank is not likely to simmer down any time soon.
HFC bank in its recent reaction to the takeover has accused Republic bank of going contrary to the deal agreed by both parties on the takeover bid and also not going through the right process.
HFC bank has sworn to take appropriate steps to ensure that Republic bank complies with the applicable legal and regulatory requirements under Ghanaian law.
According to HFC bank the process adopted by Republic bank in its takeover bid of the bank is against the collaborative theme agreed between the two parties.
In a press statement from HFC bank signed by the bank’s company secretary it stated that after receipt of conditional letters from the Bank of Ghana (BoG) Republic bank and its agents were written to hold onto any planned action whilst a clarification of the conditions and the process was sought to ensure that the appropriate process was adhered to particularly as Republic bank itself had concerns with the communiqué from the central bank.
But the Group General Counsel and Corporate Secretary of Republic bank Jacqueline Quamina in an earlier interview with Citi Business News denied the accusations.
She told Citi Business News Republic bank has so far gone through the process mandated by Ghanaian law.
She also denied Republic bank had not gone by the deal agreed by the two parties.
There are reports that both parties agreed that the takeover should be done after three years, but Jacqueline Quamina says the agreement stated the takeover should be after a year.
Concerns have been raised on what will be the fate of workers when Republic bank takes over.
Jacqueline Quamina says no worker will be fired.
In a related development an investment analyst and broker is warning any further delay in completing the takeover of HFC Bank by Republic Bank could have some implications for the deal.
Republic Bank a couple of weeks ago adjusted upwards its share offer price from 1 cedi 30 pesewas to 1 cedi 60 pesewas.
The market value of the shares of HFC has however been appreciating in value in over the past weeks, hence reducing the premium and making offer less attractive.
It moved up by 3 pesewas yesterday to close the day at 1 cedi 32 pesewas.
Nana Agyeman Gyamfi of Merban Stock brokers tells Citi Business News this could have some implications for the deal.
‘the implication might be that the offer will not look attractive to investors if the current market price is close to the offer that means there will be no incentive to offload their shares. Definitely they will have to make another offer but for now this is what they have put forward.’
By: Vivian Kai Mensah/citifmonline.com/Ghana