Republic Bank has submitted its Offeror’s Statement to HFC Bank and the Ghana Securities and Exchange Commission (SEC) detailing its offer to all shareholders of HFC Bank, the bank said in a release yesterday.
The offer was made on Tuesday.
The mandatory offer is in line with the requirements of the SEC Code on Takeovers and Mergers and follows the Bank of Ghana’s approval for Republic Bank to make a mandatory offer to shareholders. Republic Bank made the announcement on April 17, 2014.
The share price offered by Republic has been increased from its initial indicative offer of GHS 1.30 (US$0.48) to GHS 1.60 (US$0.58) per share. The revised offer is at a premium of 65 per cent over the mandatory price and 28 per cent above the current trading price.
As part of the statement, Republic Bank’s auditors, Ernst and Young, have provided confirmation that available resources of the Bank are sufficient to satisfy full acceptance of the offer, which shall be settled in cash or by way of bank transfer. The offer is subject at all times to the provisions of the Takeover Code and the Listing Rules of the Ghana Stock Exchange, the bank said.
Republic Bank continues to follow the process as detailed by the SEC; which includes a requirement that HFC Bank advises receipt of the Offeror’s Statement to the SEC within 24 hours.
“Republic Bank remains committed to adding value to the total operations of HFC Bank, through the provision of opportunities; the continued professional development of staff, and the growth and expansion of product and service offerings,” the bank said.