Republic Bank’s request seeking to nullify HFC bank’s application seeking to stop Republic’s takeover of the institution has been thrown out of court, Ghanaian newsite has reported.
Justice George Koomson of the Accra Commercial High Court, threw out the request, noting in his ruling that the application by HFC filed last month has merit and should be heard.
HFC bank in May filed a suit in court seeking to place an injunction on the takeover of the institution by Republic Bank; the Ghanaian Securities and Exchange Commission has also been named a defendant.
HFC has said Republic, in its “quest to take over the institution”, adopted a process “against what was agreed upon” since Republic became the major shareholder.
Justice Koomson also struck down a similar request from the SEC to throw out HFC’s claims because it has failed to explore internal procedure to address its grievances, myjoyonline.com reported.
The Judge however granted a request by lawyers for the plaintiff, HFC bank to award a cost of 1,500 Ghana cedis (US$500) against the defendants.
“The bank is disappointed that these legal proceedings have been resorted to, as they have delayed the mandatory takeover process. Republic is confident, however, that the matter will be successfully resolved, thereby allowing shareholders to exercise their rights to consider whether to sell their shares,” the bank said in a statement.
Republic owns 40 per cent of HFC; by Ghanaian law, a company owning 30 per cent or more shares in an institution must make a mandatory offer for 100 per cent.