Republic bank has secured more than enough shares to gain controlling interest in local bank HFC.
[contextly_sidebar id=”dAiakhI6SlKzlYkmD93sChtU77ksmfga”]Republic bank was seeking to gain at least 51 percent stake in HFC bank.
However Citi Business News has learnt Republic bank now owns about 57 percent stake in HFC bank.
Sale of shares
Sources familiar with the matter tell Citi Business News the bank managed to secure about 57 percent stake after both private and state run companies as well as individual shareholders gave up their shares in the bank.
Cocobod which has 5.6 percent stake in the bank sold its shares while individual shareholder Kwame Addo with 6.8 percent stake in the bank also sold his stake.
However Citi Business News has gathered the bank’s former MD Asare Akuffo did not sell any of his shares in the bank.
Republic bank paid 1 cedi 95 peswes per share to shareholders who wanted out.
Sources familiar with the sale of the shares say Republic bank is likely to dish out at least 115 million cedis in total to shareholders who sold their shares.
The HFC stock is currently trading at 1 cedi 71 peswes on the Ghana Stock Exchange.
New composition
Per the sale Republic bank now has 57.1 percent stake, SSNIT about 26 percent, Ghana Union Assurance company about 10 percent, SIC 3.1 percent with about 3 percent belonging to individual shareholders.
Republic bank was forced to make a mandatory offer to shareholders of the bank in line with the country’s code on takeovers and mergers after it gained over 31 percent stake in the bank.
The offer ended yesterday May 8th, 2015.
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By: Vivan Kai Lokko/citifmonline.com/Ghana